- Ethereum dropped 3.7% from $3,933 but still maintains a 56% gain over the last 30 days, reflecting a strong uptrend.
- Over 1 million ETH were removed from exchanges in one month, suggesting lower selling pressure and possible accumulation.
- July saw $5.1 billion in Ethereum ETF inflows, reinforcing confidence among institutional investors despite short-term price dips.
Ethereum is trading at $3,786, down 3.7% from its recent peak of $3,933 recorded on July 28. Despite this pullback, the cryptocurrency has gained 56% over the last 30 days, reflecting a strong upward trajectory.
More than 1 million ETH have been withdrawn from centralized exchanges over the past month, according to on-chain data. This shift points to a growing trend of long-term holding and reduced immediate sell pressure, typically interpreted as bullish for price stability.
Ethereum spot ETFs are still experiencing solid inflows, and 28 July posted net investment of $65.14 million. The summer flow into ETFs has now hit a total of over 5.1 billion in a single month in July, with institutional concerns breathing down its neck. It is in this continuous demand that confidence is being held in light of the short-term volatility.
The volume of Ethereum futures increased 28.33% to $111.23 billion, as per CoinGlass. In the meantime, the open interest fell to 1.45% to $57.5 billion. The drift implies that traders are actively positioning, taking a rotational trade that is not too highly leveraged; thus, all is well concerning market interest.
The technicals are positive, and consolidation is on the near-term horizon
Ethereum is still trading above its major moving averages, the 10-, 20-, 50-, and 200-day EMAs and SMA. Such orientation validates the continued bullish conditions. Yet, short-term forms of momentum indicators point to weakness. The relative strength index stands at 74.6, and the stochastic oscillator is very close to 89.
Source: TradingView
Ethereum is near its maturity Bollinger Band, and this is a signal that it will cool off. The first support is given to the zone between $3680 and $3700, which is coincidental to the 10-day EMA. A further decline even below this should be possible, leading to $3,480, but a macro or ETF rotation would probably be needed in order to instigate a bigger correction.
There is still upside potential in the case of volume recovery and momentum maintenance
Should Ethereum take a move above the level of $3,960, there is a chance that it might be tested at a value of 4,000. Bullish momentum in the future can see ETH build on gains even higher, perhaps up to the $4,200 to $4,300 mark or so, given the persisting inflows of ETF and stable derivative activity.
