Ethereum News Today: Ethereum ETF Inflows Fuel 56% Surge Amid Heavy Bearish Selling Pressure

Ethereum is caught in a tug-of-war between intensifying bearish selling pressure and resilient on-chain metrics that suggest underlying strength among long-term holders. The cryptocurrency is currently trading near $3,643 after a historic $5.4 billion inflow into Ethereum ETFs in July 2025, which supported a 56% monthly surge in price [1]. Despite this institutional backing, key on-chain indicators such as the Net Taker Volume have turned sharply negative, hitting -$418.8 million—its second-largest daily sell-side imbalance ever recorded. This suggests aggressive selling activity and reduced buyer participation, historically seen before local tops and potential reversals [2].

The imbalance is evident in the taker buy/sell ratio, showing that 116,000 more ETH were sold than bought in a single day, according to CryptoQuant [2]. This heavy selling pressure has pushed Ethereum into a descending channel after it failed to reclaim the neckline resistance at $3,950, a critical level for bullish continuation. The RSI is currently at 57, indicating neutral momentum and no clear breakout pressure, further highlighting the market's uncertainty.

At the same time, Ethereum’s on-chain activity is showing signs of resilience. According to IntoTheBlock, New Addresses surged 29.94% while Active Addresses climbed 3.17%. This increase in user engagement suggests a growing foundation for price stability and potential recovery, despite the bearish price action [3]. The divergence between price and on-chain activity is a positive sign for the underlying network, as historically, such growth has provided a buffer against bearish trends.

Long-term holder (LTH) behavior also remains a key factor. The MVRV Long/Short Difference remains above 12.36%, indicating that LTHs are still sitting on sizable unrealized gains [4]. This suggests strong conviction from seasoned investors, even as the price remains under pressure. However, the NVT Ratio (with Circulation) has spiked, signaling that Ethereum’s market cap is outpacing transaction activity, which could indicate short-term overvaluation.

The market is closely watching whether bulls can reclaim the $3,950 resistance level. If they succeed, it could validate the ongoing bullish structure and pave the way for a retest of key levels. A failure to do so may invalidate the pattern and open the door to further retracement. The coming days will be critical in determining whether Ethereum can stabilize or if it will continue to face downward pressure.

Analysts remain divided on the short-term outlook. Darkfost of CryptoQuant predicted additional selling pressure and short-term weakness in the ETH futures market, warning that Ethereum has failed to break the $4,000 resistance level [5]. Others point to strong ETF inflows and institutional demand as critical support factors, arguing that Ethereum’s price has room to test higher levels [1].

Ethereum’s technical headwinds are also being influenced by the upcoming EIP-7999, a major overhaul of the network’s gas fee structure. While the upgrade is seen as positive for long-term scalability, it has introduced short-term uncertainty. The current market environment suggests that Ethereum may consolidate or even experience a price decline before the full effects of the upgrade are realized [6].

With the price currently hovering near $3,643 and buyers absorbing some of the selling pressure, the broader crypto market remains influenced by uncertainty around Federal Reserve policy and ongoing whale sell-offs. The next move for Ethereum will likely depend on whether buyer demand can absorb the current wave of selling pressure or if the cryptocurrency will continue to consolidate in the $3,600–$3,900 range [4].

Source:

[1] Blockchain.News - Ethereum Price Consolidates Near $3,677 After Historic $5.4B ETF Inflows

(https://blockchain.news/news/20250807-ethereum-price-consolidates-near-3677-after-historic-54b-etf-inflows)

[2] Mitrade - Ethereum Consolidation Deepens As Taker Buy/Sell Ratio Turns Negative

(https://www.mitrade.com/insights/news/live-news/article-3-1014122-20250806)

[3] IntoTheBlock - Ethereum’s New and Active Addresses Rise 29.94% and 3.17% Respectively

(https://intothemoney.com)

[4] Santiment - MVRV Long/Short Difference Above 12.36% Suggests Long-Term Holder Confidence

(https://santiment.net)

[5] CryptoQuant - Darkfost Warns of Additional Selling Pressure in ETH Futures Market

(https://cryptoquant.com)

[6] FXLeaders - Ethereum Faces Technical Headwinds as EIP-7999 Promises Fee Structure Revolution

(https://www.fxleaders.com/news/2025/08/06/ethereum-faces-technical-headwinds-as-eip-7999-promises-fee-structure-revolution/)