Recently, significant changes have occurred in the Ethereum market that draw the attention of analysts and investors. Amid rising selling volumes and movements of large wallets, questions arise about the future direction of the cryptocurrency.
Sharp Drop in Trading Volume
Ethereum (ETH) recorded a sharp decline in trading activity, with daily Net Taker Volume falling to -$418.8 million, according to CryptoQuant data. This means that around 115,400 more ETH were sold via market orders than bought on the same day. Such order flow indicates urgency from sellers who prioritized speed over price. Such deep negative values are rarely observed and typically occur near market peaks. This imbalance signals that buyers were unable to match the volume coming from the sell side.
Large Wallet Transfers
Two large ETH holders have moved a combined total of nearly $69 million to centralized exchanges within the past 24 hours. Wallet 0xc156 deposited 13,459 ETH to Binance, while 0x46DB sent 5,504 ETH to OKX. Transfers of this size often appear before increased sales. While not all deposits lead to sales, they usually indicate preparation to exit positions, especially during uncertain market conditions.
Price Status and ETF Activity
Ethereum is now trading close to $3,630, down roughly 1% in the last day and 4% over the week. After rising steadily in July, the price broke below a trendline that had supported the upward move. A recent retest of this trendline failed, suggesting that sellers remain in control for now. Notably, the current setup shows the $3,800 level as key resistance. If the asset remains under this area, focus shifts to possible support around $3,147 and $2,913. These zones may offer buyers an entry point, especially if broader conditions stabilize. Ethereum ETFs saw new inflows of $73.3 million on Tuesday, following a period of heavy withdrawals. This change in flow indicates a shift in sentiment, and while retail buyers may have been cutting exposure, some recent buying could mean that some traders are setting up for a rebound.
The recent developments in the Ethereum market highlight its volatility and complex market conditions. Sellers and large holders play a crucial role in shaping short-term dynamics, which raises interest among analysts and traders.
