Ethereum News Today: Whales and Institutions Flip Sides as ETH Retailers Exit

Ethereum’s price has pulled back near a key CME futures gap between $4,050 and $4,100, a level that traders are closely watching for signs of a breakout or reversal. The cryptocurrency is currently trading near $4,350 after falling from recent highs of $4,800. Historical data shows that when Ethereum closed a large gap previously, it gained over 40% within weeks. Analysts are now monitoring whether a similar pattern could repeat, with the $4,100–$4,250 range identified as a potential support zone [1]. The RSI is declining but has not yet reached oversold levels, indicating room for further price movement [1].

On-chain data reveals a notable shift in investor behavior, with retail holders offloading Ethereum while larger investors and institutions continue to accumulate. Retail wallet holdings have dropped from 10.5 million ETH in March to 8.7 million ETH, according to data from CryptoQuant. Meanwhile, whale wallets are increasing their stakes. This trend suggests a shift in market sentiment, with experienced players and institutional actors using the dip as an opportunity to build long-term positions [1].

Exchange reserves have also declined sharply, reaching a three-year low of 18.5 million ETH. This reduction in exchange holdings often signals reduced selling pressure and increased confidence in Ethereum’s long-term value. The recent sharp drop in exchange supply has raised speculation about a potential supply crunch, which could further support the asset’s price trajectory. Analysts note that when exchange balances fall, it typically indicates that holders are less willing to sell and more focused on long-term holding strategies [1].

The broader market context includes rising volatility, driven in part by macroeconomic events and geopolitical tensions. Traders are watching key U.S. economic data, including the July FOMC minutes, jobless claims, and Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium. These events could influence market sentiment and drive short-term price fluctuations. Ethereum’s price recently stalled near its all-time high of $4,891.70, set in November 2021, suggesting that institutional and retail investors may be taking profits after a year-long 66% rally [5].

Meanwhile, U.S. spot Ethereum ETFs have faced outflows, with $197 million leaving the funds on Monday—the second-highest single-day outflow since their launch. This compares to $122 million in outflows for Bitcoin ETFs on the same day. Despite these outflows, Ethereum ETFs still hold 5.08% of the total ETH supply, a significant portion that could influence future price dynamics if inflows resume. Analysts have noted that ETF holdings could potentially surpass Bitcoin’s current 6.38% ETF allocation if the inflow trend continues [5].

Ethereum’s market dynamics continue to distinguish it from Bitcoin. While Bitcoin has shown relatively stable exchange inflows, Ethereum has seen a surge in coins moving onto exchanges, reaching as high as 2.6 million ETH in mid-August. This divergence suggests differing market strategies between the two leading cryptocurrencies. Bitcoin’s moderate inflows indicate less urgency among holders to liquidate positions, while Ethereum’s increased inflows may signal profit-taking or preparation for potential volatility linked to upcoming events [3].

Ethereum’s price action remains bullish in the longer term, with its current position above key moving averages (50, 100, and 200-day) reinforcing a bullish structure. Traders are watching the $4,200 level as a crucial short-term support, and a successful defense could set the stage for another rally toward the $4,800–$5,000 range. Conversely, a breakdown below this level could open the door to a pullback toward $3,800–$3,900. The market remains highly volatile, and investors are advised to monitor both technical indicators and macroeconomic developments closely [3].

Source:

[1] ETH Price Targets $4070 CME Gap After Hitting Key Zone (https://cryptopotato.com/eth-price-targets-4070-cme-gap-after-hitting-key-zone/)

[2] US spot Ethereum ETFs now hold over 5% of ETH supply (https://www.theblock.co/post/367378/ethereum-etfs-eth-supply)

[3] Ethereum Floods Exchanges As Bitcoin Remains Unshaken (https://www.mitrade.com/insights/news/live-news/article-3-1049012-20250819)

[4] Bitcoin vs. Ethereum: The Complete Guide (2025) - Supra (https://supra.com/academy/bitcoin-vs-ethereum/)

[5] Ethereum ETFs Lose $197 Million—Even Worse Than Bitcoin (https://finance.yahoo.com/news/ethereum-etfs-lose-197-million-152531921.html)