Ethereum News Today: Ethereum Surges Over 60% on ETF Inflows RSI 70 Signals Potential Correction Amid $3.9B Exchange Withdrawals

Ethereum (ETH) has surged over 60% in the past month, reaching $3,940, its highest level since December 2024, before retreating to $3,800 as of July 28, 2025 [1]. The rally coincides with a significant shift in on-chain activity, as over 1 million ETH tokens—valued at approximately $3.9 billion at current rates—were withdrawn from crypto exchanges within 30 days. This exodus, highlighted by X user Ali Martinez, reflects a broader trend of investors moving funds to self-custody wallets, reducing immediate selling pressure [1].

CryptoQuant data reveals Ethereum’s exchange supply has fallen to 19 million tokens, the lowest level in nearly a decade, reinforcing bullish sentiment. Parallel to this, spot ETH ETFs have seen sustained inflows, with SoSoValue reporting consistent net positive flows over recent weeks. Analysts attribute this to growing institutional confidence and regulatory clarity in select markets [1].

However, technical indicators suggest caution. Ethereum’s Relative Strength Index (RSI) has climbed to 70, approaching overbought territory, which typically precedes short-term corrections. Readings above 70 indicate potential price pullbacks, while levels below 30 are traditionally seen as buying opportunities [1].

Crypto community figures have varied projections. X user cyclop described the market’s strength as “the strongest sign of strength you can get,” forecasting a parabolic move to $4,800. Meanwhile, analyst Crypto Rover noted historical correlations between ETH’s price and Federal Reserve policy decisions, pointing to prior gains following the last two FOMC meetings. The July 29–30 meeting, expected to maintain the benchmark rate at 4.25%-4.50% with 95.5% probability per Polymarket, could influence near-term volatility [1].

The interplay of on-chain metrics and macroeconomic factors underscores Ethereum’s complex trajectory. While reduced exchange balances and ETF inflows signal robust demand, overbought technical conditions and central bank policies remain critical variables. Investors must weigh these dynamics as the market navigates potential inflection points.

Sources:

[1] [1,000,000 ETH in 30 Days: Here Comes the Next Explosion?](https://coinmarketcap.com/community/articles/68878ce2fb184a125f70cccf/)