Ethereum News Today: Ethereum Hits $3,700 as Whale Inflows Soar 171.75% but 90-Day Net Flow Dives 2,512.17%

Ethereum’s recent price surge above $3,700 has sparked questions about the sustainability of its rally, despite signs of short-term accumulation by major holders and increased speculative activity. Whale activity data reveals a mixed picture: while 7-day net inflows into Ethereum rose 171.75%, indicating short-term buying by large holders, the 90-day net flow fell by 2,512.17%, signaling ongoing distribution by long-term entities [1]. This divergence suggests that while some large investors are capitalizing on the rally, broader selling pressure remains a risk.

The price breakout triggered significant liquidations, with over $160 million in short positions closed on Binance alone, following a similar $195 million liquidation near $3,500 [2]. These events highlight a leveraged trading environment where forced buybacks temporarily buoy prices but lack the foundation of organic demand. On-chain metrics reinforce this concern: spot markets showed a 90-day "Taker Sell Dominant" trend, with sell orders consistently outpacing buys [3]. This pattern indicates traders are using higher prices to exit positions rather than accumulate, weakening the rally’s structural support.

Derivatives markets further underscore bearish positioning. The Long/Short Ratio for Ethereum stood at 0.96, with 51.01% of positions short, reflecting traders’ anticipation of a potential reversal after the recent short squeeze [4]. Meanwhile, technical analysis from an Elliott Wave model suggests Ethereum could test $3,900–$4,000 if key support levels hold, though immediate resistance at $3,660 and support at $3,500 remain critical [5]. Analysts caution that without a shift toward sustained long-term accumulation, the rally may falter.

Broader market dynamics complicate the outlook. Bitcoin’s dominance in trading volume has risen as altcoin enthusiasm wanes, reflecting a broader correction in the crypto market since early July [6]. Ethereum’s relative strength index (RSI) shows overbought conditions, and declining exchange reserves indicate heightened demand, yet these metrics have not translated into widespread spot market adoption [7]. Institutional participation, including record futures open interest, provides some support, but speculative trading remains the primary driver [8].

The sustainability of Ethereum’s rally hinges on whether its gains are fueled by fundamental demand—such as adoption in DeFi or enterprise use cases—or purely by market sentiment. While technical models project a potential continuation to $3,900–$4,000, persistent selling pressure and a bearish derivatives landscape suggest risks of a retracement to $3,380 if bullish momentum fails to solidify [9].

Sources:

[1] [Ethereum News Today: ETH/BTC Breaks 0.02400-0.02600 Consolidation](https://www.ainvest.com/news/ethereum-news-today-eth-btc-breaks-0-02400-0-02600-consolidation-surges-16-7-0-03034-altcoin-strength-signals-emerge-2507/)

[2] [Ethereum Surges Past Bitcoin: ETH Volume Dominance](https://www.btcc.com/en-IN/square/Coingape/689396)

[3] [Is ETH the New Leader? Ethereum Beats Bitcoin in Volume](https://cryptonews.net/news/ethereum/31316895/)

[4] [Bitcoin Flirts with $120K, Altcoins Surge, Regulators Strike](https://ts2.tech/en/bitcoin-flirts-with-120k-altcoins-surge-regulators-strike-nft-mania-returns-crypto-roundup-july-23-24-2025/)

[5] [Ether/Bitcoin Ratio Futures (Jul 2025) Trade Ideas](https://www.tradingview.com/symbols/CME-EBR1%21/ideas/?contract=EBRN2025)

[6] [Top 3 Altcoins to Buy Cheap as Crypto Market Is Down Today](https://bravenewcoin.com/sponsored/presale/why-are-crypto-prices-down-sol-xrp-fall-3-altcoins-to-buy)

[7] [Ethereum’s recent breakout has sparked a surge in market attention](https://coinmarketcap.com/community/articles/6883d5563ff24b03a300a6a5/)

[8] [Manuel - Cardano founder Charles Hoskinson says](https://www.facebook.com/photo.php?fbid=728559193390625&set=a.130****63246274&type=3)

[9] [Wave Analysis Suggests Continuation Toward $3,900–$4,000 Range](https://coinmarketcap.com/community/articles/6883d5563ff24b03a300a6a5/)