In recent days, Ethereum has faced a considerable drop in daily inflows, coinciding with the price stalling below the $3,900 mark. Despite this, the cryptocurrency shows positive monthly performance.
Decline in Daily Ethereum Inflows
On July 30, the daily total net inflows to Ethereum dwindled to $5.79 million, significantly down from the $218.64 million recorded on July 29. The cumulative total net inflows stand at $9.62 billion across all ETF products. The total value traded hit $1.49 billion, while net assets reached $21.43 billion. Now, ETFs holding Ethereum comprise 4.71% of the total Ethereum market cap.
Increase in Open Interest for Ethereum
According to Glassnode data, Ethereum's open interest dominance rose to nearly 40%, marking the highest level since April 2023. This indicates a capital rotation in the market as traders adjust their positioning strategies. The data also suggests increased speculative activity and leverage usage, as traders actively position for potential price movements.
Ethereum Price Dynamics
Recently, Ethereum showed significant increases, with a 6.1% weekly gain and a 57.2% monthly rise. However, the current price has dropped from a weekly high of $3,933.79 to the present $3,860, raising questions about the sustainability of the upward momentum. The ongoing price consolidation near the $3,900 resistance zone presents technical challenges. Historically, July tends to show positive performance, but mixed results in recent years create uncertainty regarding future price movements.
The situation in the Ethereum market is tense with the decline in inflows, increase in open interest, and price consolidation. Despite positive monthly results, the current state creates uncertainty for future movements.
