Ethereum News Today: Ethereum Circulating Supply Drops 10% in Month as Price Rises Above $3,700

Ethereum’s circulating supply has seen a notable decline, with reserves on major exchanges such as Binance dropping by nearly 10% in a month, or 496,984 ETH, bringing the total to around 4.55 million ETH. This sharp reduction in supply suggests a shift in market behavior, with traders and investors potentially moving assets to long-term storage or deploying them in decentralized finance (DeFi) protocols. The withdrawal contrasts with the rising holdings of USDT, which increased by over 258 million, indicating a broader reallocation of capital within the crypto market [1].

The declining supply has coincided with a price increase, with Ethereum trading above $3,700 as of August 7, 2025. Technical indicators reinforce this bullish momentum, as the price recently broke through a descending trendline and is currently supported by the 26 EMA. The relative strength index (RSI) sits at around 66, which, while not in overbought territory, suggests continued upward potential. Market analysts have noted that the combination of a shrinking supply and stable or rising demand aligns with fundamental economic principles that historically drive price appreciation [1].

Ethereum’s price movement has also been influenced by broader market dynamics. July 2025 saw the cryptocurrency rise more than 35%, bolstered by institutional adoption and regulatory developments [2]. Despite a 9% drop in Ethereum’s daily trading volume to $30.37 billion on August 4, the overall trend remains positive, with the token consolidating in the $3,500–$3,600 range. Analysts suggest that a sustained move above this level could trigger a significant price rally, potentially pushing Ethereum toward $7,600 within weeks [5].

Regulatory clarity has played a key role in Ethereum’s market strength. The shifting legal landscape has reinforced Ethereum’s position in the crypto ecosystem, particularly as new ETF categories introduced in July 2025 included Ethereum as a core asset [2]. Meanwhile, the memecoin segment has seen mixed performance, highlighting Ethereum’s resilience compared to smaller, more speculative tokens [7].

Looking ahead, Ethereum remains a focal point for long-term investors. While some forecasts suggest the token could see substantial value appreciation over the next decade [8], the immediate outlook depends on continued capital inflows and the ability of buyers to maintain control of key price levels. If Ethereum can sustain its current momentum, it may be on the path to a major breakout, aligning with the broader positive sentiment in the crypto market.

Sources:

[1] Ethereum’s Supply Decline Suggests Potential for Price Rally Amid Market Strength

https://en.coinotag.com/ethereums-supply-decline-suggests-potential-for-price-rally-amid-market-strength/

[2] 3 ETF Categories That Shined in July 2025

https://www.advisorperspectives.com/commentaries/2025/08/07/three-etf-categories-shined-july-2025

[5] ETH Reclaims $3600 – $7600 Could Be Just Weeks Away

https://www.coinspeaker.com/ethereum-price-prediction-eth-reclaims-3600/

[7] MemeCoin Market Sees Mixed Performance in August 2025

https://www.ainvest.com/news/ethereum-news-today-memecoin-market-sees-mixed-performance-august-2025-2508/

[8] Here's What It Would Take to Make $1 Million From ...

https://www.mitrade.com/insights/news/live-news/article-8-1019976-20250807