Ethereum’s recent bullish momentum is facing a slowdown, with signs pointing to reduced participation from institutional investors and whales. After reaching a peak of $3,800 in July, ETH now struggles to maintain support as it trades at $3,620, showing a nearly 10% drop in the past 24 hours.
ETH Futures Open Interest Dips to $6.2B on CME
According to data from the Chicago Mercantile Exchange (CME), open interest in Ethereum futures has fallen to $6.2 billion, a five-day low. This significant drop in open interest is crucial, as CME’s ETH futures are widely used by institutional players looking for regulated exposure to the crypto asset. The decline may signal that institutions are reducing their positions in Ethereum, potentially weakening short-term price momentum.
Whale Activity Declines: 339% Drop in Large Holders’ Netflow
On-chain data further confirms that major investors are pulling back. Large holders, defined as those controlling over 1% of Ethereum’s circulating supply, have seen a 339% decline in netflow over the past seven days. This suggests a significant drop in accumulation by whales, reflecting waning confidence in ETH’s short-term price trajectory.
Typically, increasing netflow among large holders indicates accumulation, a bullish signal. A drop, however, points to reduced conviction and could add selling pressure to the market.
Price Outlook: $3,314 in Sight if Selling Continues
Ethereum is currently facing intensified selling pressure. Despite a 17% surge in trading volume over the last 24 hours, the price has declined, forming a negative divergence. If this trend persists, ETH could drop to the support level of $3,524. A breach of that level could pave the way to a further decline toward $3,314.
However, if buying interest resurfaces and institutions re-enter the market, Ethereum may rebound and aim for a retest of the $3,859 resistance zone.
Conclusion
Ethereum’s struggle to regain $4,000 highlights growing bearish sentiment in the crypto market. The decline in CME futures open interest and whale accumulation are critical factors that may influence the altcoin’s next move. As ETH hovers near key support levels, traders and investors should keep a close eye on institutional and whale behavior for potential trend reversals.
Current Price: $3,620
Market Cap: Over $434 billion
24h Trading Volume: $19.8 billion
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