Ethereum [ETH] faced a significant challenge as it dipped below the $3,550 level, which had been a crucial support level since July 18th. The altcoin had formed a short-term trading range between $3,550 and $3,860, and its drop below this support indicated the possibility of a further decline towards $3.2k or even $3k.
Adding to the bearish pressure on Ethereum was the recent whale activity on popular centralized exchanges. LookonChain reported that a whale had deposited 26,182 ETH in just 48 hours, leading to potential sell pressure. Additionally, BitMEX co-founder Arthur Hayes sold a substantial amount of ETH and Ethena [ENA], casting doubt on the bullish sentiment from large ENA holders.
Further exacerbating the bearish trend, Coinalyze data revealed a 5.47% decrease in Open Interest (OI) in the past 24 hours, indicating a dominant bearish sentiment despite the positive Funding Rate.
On August 1st, there was a significant inflow of 200,573 Ethereum into exchanges, hinting at potential selling pressure in the market. While the 7-day average of Ethereum Exchange Netflows remained negative, indicating consistent accumulation, the sudden influx of ETH on that day raised concerns about the price trend.
Looking at the price targets and market structure, Ethereum faced key support levels at $3.2k and $2,936 after falling below the $3,550 range low. The 50-period Moving Average had acted as a dynamic support in recent hours, but a failure to hold above this level could strengthen the bearish case for ETH.
In conclusion, Ethereum’s price outlook remained uncertain as it faced significant selling pressure from whales and insiders. Traders and investors should closely monitor the key support levels and market structure to gauge the potential direction of the price movement in the short term.