Quick overview

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Ethereum dropped below $3,500 on August 2, reflecting market fatigue and pessimism. Increased selling pressure and market exhaustion are the main reasons for this sell-off.

Significant net outflows from exchanges indicate heightened selling activity, and technical indicators, including the RSI and MACD, suggest that the market is oversold.

ETH’s bearish trend can be attributed to these factors. The recent price dip below $3,500 marks a major shift in the cryptocurrency market, driven by sentiment and technical signals.

The overall exhaustion in the market is evident in this decline, affecting ETH and related assets. According to market analysts, the lack of official statements from Ethereum leaders like Vitalik Buterin or Joseph Lubin suggests that the drop is based on general market conditions rather than news specific to any project.

Ether’s net outflows, which represent the amount of cryptocurrency leaving exchanges, indicate investors’ intentions to sell or hold their assets off-exchange. On August 1, 2025, these outflows totaled $113 million, suggesting a bearish outlook for the market.

Market analyst Michaël van de Poppe has pointed out that this trend puts downward pressure on the prices of Ethereum (ETH) and Bitcoin (BTC). Currently, technical indicators like the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) show that Ethereum is oversold. This implies that, despite the bearish environment, a reversal or stabilization may occur soon, aligning with patterns observed in previous market cycles.