Quick overview

Live ETH/USD Chart

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On August 2nd, Ethereum dropped below the key support level of $3,400 after a substantial inflow of 200,573 ETH into exchanges. This surge indicates increased sell pressure and suggests a potential decline toward $3,000 or lower.

(ETH) broke through the critical $3,550 support level, ending a brief range that had existed since mid-July between $3,550 and $3,860. A large inflow of 200,573 ETH to centralized exchanges caused this breakdown, indicating increased selling pressure.

The possibility that ETH will test lower price targets close to $3,200 or even $3,000 shortly increases with such a move.
A whale moved more than 26,000 ETH to well-known exchanges like Binance and Kraken, according to LookonChain data, suggesting possible liquidation intentions. Furthermore, it has been reported that BitMEX co-founder Arthur Hayes sold 2,373 Ethereum (ETH) for $8.32 million and 7.76 million Ethena (ENA) tokens for $4.62 million. These significant movements add to the pessimistic market sentiment and challenge bullish assumptions.

The Ethereum exchange netflows averaged -16,644 ETH throughout July, a negative 7-day average that showed consistent accumulation, according to CryptoQuant.

But the August 1st spike of more than 200,000 ETH entering exchanges suggests that selling pressure may be on the horizon. The increase in on-chain activity is being monitored, although data from a single day does not indicate a trend reversal.