Ethereum (ETH) has seen a 3.7% retrace after a staggering 56% monthly surge, driven by ETF inflows and shrinking exchange reserves. What does this mean for traders and investors? Let’s dive into the latest Ethereum news and uncover the key trends shaping ETH’s price action.
Ethereum News: ETH Price Pulls Back Amid ETF Inflows
Ethereum retreated from its 30-day peak of $3,933 to $3,786 as of August 1, 2025, marking a 3.7% correction. Despite this, ETH remains up 56% over the past month, showcasing strong buying pressure. Analysts attribute this resilience to robust ETF inflows, with $65.14 million net inflows on July 28 alone and cumulative July inflows surpassing $5.1 billion.
Dwindling Exchange Reserves Signal Bullish Sentiment
Exchange-held ETH reserves have dropped by over 1 million ETH in the last 30 days, according to analyst Ali Martinez. This shift toward non-custodial wallets or cold storage reduces immediate selling pressure, potentially paving the way for further price appreciation. Key takeaways:
- Exchange reserves down 1 million ETH in 30 days.
- Reduced sell-side activity supports bullish outlook.
- Institutional demand remains strong.
Technical Analysis: ETH’s Bullish Trend Intact
Ethereum remains above critical moving averages (10-, 20-, 50-, and 200-day EMAs and SMAs), reinforcing its bullish trend. However, momentum indicators like the RSI (74.6) and stochastic oscillator (89) suggest short-term exhaustion. Key levels to watch:
- Support: $3,680–$3,700 (10-day EMA).
- Resistance: $3,960 (breakout target).
- Long-term target: $4,200–$4,300.
On-Chain Activity: Caution Meets Optimism
Ethereum futures volume surged 28.33% to $111.23 billion in 24 hours, while open interest declined 1.45% to $57.5 billion. This divergence often signals profit-taking without major liquidations, indicating a resilient market.
Conclusion: Ethereum’s Structural Shift
Despite short-term volatility, Ethereum’s reduced exchange reserves and strong ETF inflows highlight a structural shift in market sentiment. Consolidation phases are expected, but the overall trajectory remains bullish.
FAQs
Q: Why did Ethereum retrace 3.7%?
A: Profit-taking after a 56% monthly surge and overbought conditions led to the pullback.
Q: Are ETF inflows still supporting ETH?
A: Yes, July saw $5.1 billion in cumulative ETF inflows, with $65.14 million on July 28 alone.
Q: What does dwindling exchange reserves mean?
A: It suggests reduced sell-side pressure, as ETH moves to non-custodial wallets or cold storage.
Q: What are Ethereum’s key support levels?
A: $3,680–$3,700 (10-day EMA) is immediate support, with $3,480 as a secondary level.
