Key Takeaways
A 200.5K Ethereum inflow to exchanges on the 1st of August, as the price fell below the $3,550 mark, did not bode well for ETH bulls in the short term. Will the price dip continue, and how deep could it go?
Ethereum [ETH] was trading below the $3,550 level that has acted as a support since the 18th of July.
The altcoin had formed a short-term range that reached from $3,550 to $3,860. Its descent below the short-term support meant that a move to $3.2k or even $3k was possible.
Whale and insider moves add to bearish pressure
In a post on X, LookonChain revealed that a whale had deposited 26,182 ETH in 48 hours to popular centralized exchanges, including Binance and Kraken.
The timing of this inflow suggests potential sell pressure building.
Lookonchain also observed that BitMEX co-founder Arthur Hayes had sold 2,373 ETH, worth $8.32 million.
He also sold 7.76 million Ethena [ENA] worth $4.62 million, calling into question the assumption of bullish conviction from large ENA holders.
Adding to the bearish trend, Coinalyze data showed that Open Interest (OI) was down 5.47%, at press time, in the past 24 hours.
The Funding Rate was still positive, but the dropping OI and price showed dominant bearish sentiment.
August begins with heavy Ethereum outflows
According to CryptoQuant, the 7-day average of Ethereum Exchange Netflows remained negative throughout July, printing -16,644 ETH at press time. This indicates consistent accumulation.
However, the 1st of August saw 200,573 Ethereum flow into exchanges. This was a sign of potential selling, especially when coupled with intense on-chain activity. However, one day’s flow might not decide the price trend.
Price targets and structure flip
Source: ETH/USDT on TradingView
The market structure could give a better idea of the prevalent trend. At press time, the 12-hour timeframe’s Awesome Oscillator dipped below zero in the most recent trading session.
More importantly, Ethereum had fallen below the range low (orange) at $3,550.
The Fair Value Gap (white) at $3.2k, and the support from earlier in July at $2,936, were the next targets for ETH. The 50-period Moving Average (green) has served as a dynamic support in recent hours.
Its failure would make the bearish case stronger.
