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Ethereum Price Retraces After Local Peak
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has recently seen a notable pullback after reaching a local top near $3,933 on July 28. The digital asset is now trading at approximately $3,786, marking a 3.7% decrease from its recent peak. Despite this correction, Ethereum still boasts a robust 56% gain over the past 30 days, highlighting the strength of its recent price rally.
Over the last 24 hours, ETH trading volume slipped 12.2% to $26.1 billion. However, the broader crypto derivatives market indicates enduring investor interest. According to CoinGlass, Ethereum futures volume soared by 28.33% to $111.23 billion, even as open interest edged down 1.45% to $57.5 billion. This combination—rising volume with slightly declining open interest—suggests active position rotation and short-term profit-taking, rather than wholesale liquidations, pointing to a healthy and engaged trading environment.
Exchange Outflows: Over 1 Million ETH Withdrawn in a Month
One of the most bullish signals for Ethereum's outlook comes from rapidly declining centralized exchange reserves. Crypto analyst Ali Martinez reported that more than 1 million ETH have left exchanges in the past 30 days. Such outflows are historically viewed as a sign of long-term accumulation, as investors move their assets to non-custodial wallets or cold storage for safekeeping. This trend helps alleviate immediate sell-side pressure and could lay the groundwork for further price appreciation in the weeks ahead.
ETF Inflows Reflect Strong Institutional Demand
Another factor supporting Ethereum’s price stability is the persistent inflow into spot exchange-traded funds (ETFs). According to SoSoValue data, ETFs focused on Ethereum registered net inflows of $65.14 million on July 28 alone, pushing total July inflows above $5.1 billion. This robust institutional demand reinforces market confidence, even amid periods of short-term price volatility, and reflects the growing mainstream acceptance of ETH as a valuable blockchain asset.
Technical Analysis: Momentum Cools but Bullish Structure Intact
Trend Indicators Signal Strength
From a technical perspective, Ethereum remains solidly above major moving averages on the daily chart. The price is currently trading above its 10-, 20-, 50-, and 200-day exponential and simple moving averages, suggesting a strong underlying trend across multiple timeframes.
Oscillators Indicate Near-Term Consolidation
Despite these bullish trend signals, momentum indicators are flashing caution. The Relative Strength Index (RSI) sits at an overbought 74.6, while the stochastic oscillator approaches 89. These readings point to potential exhaustion and the likelihood of a brief consolidation period or minor pullback before a renewed push higher. The MACD remains bullish with a strong positive crossover, but other momentum indicators, such as the stochastic RSI, are beginning to flatten—hinting at possible indecision among short-term traders.
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Key Support and Resistance Levels
Ethereum is currently near the upper Bollinger Band, a technical indicator often associated with overbought market conditions and imminent price corrections. Should ETH undergo a cooling-off period, immediate support can be found in the $3,680–$3,700 range, which aligns with the 10-day EMA. A drop below this level might trigger a more significant correction down to $3,480; however, such a move would likely require increased selling pressure or waning ETF inflows.
Looking higher, a confirmed breakout above $3,960 would shift focus back to the psychological $4,000 level. Sustained momentum could then propel Ethereum toward the $4,200–$4,300 range if trading volume increases and bullish sentiment persists among crypto investors.
Overall, while Ethereum faces short-term price headwinds, tightening exchange supply and robust ETF inflows signal underlying strength for the crypto asset—potentially setting the stage for future gains in the evolving blockchain landscape.
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