Ethereum ($ETH ) Market Update
Ethereum has dropped around 5% over the past week, currently trading near $3,633, and ranging between $3,500–$3,700. This pullback follows recent gains and appears to be driven by profit-taking and a broader market cooldown. Despite multiple attempts, ETH has yet to break through the key $4,000 resistance, reflecting cautious sentiment among traders.
On-chain and derivatives data paint a more detailed picture. The taker buy/sell ratio on Binance futures has fallen to 0.87, one of the lowest this year — signaling a rise in selling pressure and a shift toward short positions since mid-July. This aligns with declines in the 7-day and 30-day SMAs, indicating a slowdown in momentum.
With Binance holding the highest open interest in ETH futures, the dominance of sellers suggests that ETH may remain in consolidation until buying interest picks up. While technical indicators currently show weakness and the potential for further downside, some analysts point to a large monthly triangle pattern forming — often a precursor to a strong breakout if resistance levels are breached.
Market views are split: some see potential for ETH to surge toward $8,000, provided demand returns; others remain cautious, waiting for confirmation of renewed bullish strength.
In summary: Ethereum is consolidating below $4,000 amid heightened futures selling pressure. Short-term signals suggest continued weakness, but longer-term chart patterns still leave room for a major breakout if sentiment turns bullish and resistance is overcome.
