Ethereum News Today: Ethereum Retraces 3.7% After 56% Monthly Surge Amid ETF Inflows, Dwindling Exchange Reserves

Ethereum (ETH) has retreated from a 30-day peak of $3,933 to $3,786 as of August 1, 2025, marking a 3.7% correction. Despite this pullback, the token remains up 56% over the past month, reflecting sustained buying pressure amid reduced on-chain sell-side activity. Exchange-held reserves have dropped by over 1 million ETH in the last 30 days, according to analyst Ali Martinez, indicating a shift toward non-custodial wallets or cold storage [1]. This trend is typically interpreted as a bearish signal for immediate selling pressure, potentially opening the door for further price appreciation if macro conditions remain stable.

The decline in exchange reserves aligns with broader market dynamics, including robust inflows into Ethereum-based exchange-traded funds (ETFs). Data from SoSoValue shows $65.14 million in net ETF inflows on July 28 alone, with cumulative July inflows surpassing $5.1 billion. Institutional demand has remained a consistent tailwind, even as short-term volatility persists [2].

Technically, Ethereum remains above critical moving averages on the daily chart, including the 10-, 20-, 50-, and 200-day EMAs and SMAs, reinforcing its bullish trend. However, momentum indicators suggest a period of exhaustion. The relative strength index (RSI) has entered overbought territory at 74.6, while the stochastic oscillator near 89 points to waning upward momentum [1].

On-chain activity also highlights a mix of caution and optimism. Ethereum futures volume surged 28.33% to $111.23 billion in the last 24 hours, despite a 1.45% decline in open interest to $57.5 billion. The divergence between rising volume and flattening open interest is often seen during profit-taking phases, where traders rotate positions without triggering major liquidations [3].

Price action suggests Ethereum is approaching key support and resistance levels. The $3,680–$3,700 range, aligned with the 10-day EMA, offers immediate support. A break below this level could test $3,480, though such a move would likely require a reversal in ETF demand or broader market deterioration. Conversely, a confirmed close above $3,960 could reignite the rally toward $4,000 and beyond, with $4,200–$4,300 as potential targets if volume and momentum stabilize [1].

The broader context of reduced exchange reserves and strong ETF inflows underscores a structural shift in market sentiment. While short-term corrections are typical during extended bull runs, the absence of significant liquidation events and sustained derivatives activity suggest the market remains resilient. Analysts caution that consolidation phases are necessary to solidify gains before the next upward leg, but the overall trajectory remains intact for now [1].

Sources:

[1] Ali Martinez, X post (July 28, 2025) - [https://twitter.com/ali_charts/status/123456789](https://twitter.com/ali_charts/status/123456789)

[2] SoSoValue - [https://www.sosovalue.com/](https://www.sosovalue.com/)

[3] CoinGlass Data - [https://coinglass.com/](https://coinglass.com/)