Ethereum’s price has retreated to $3,786 following its recent peak of $3,933, marking a 3.7% correction despite maintaining robust 30-day gains of 56%. The pullback occurs against a backdrop of significant institutional inflows and declining exchange reserves that signal strong long-term confidence.
Exchange-traded funds have absorbed $5.1 billion in July alone, including $65.14 million on a single recent day, demonstrating accelerating institutional participation. Simultaneously, over 1 million ETH ($3.78 billion equivalent) exited centralized exchanges, dramatically reducing immediate sell pressure and indicating strategic accumulation by holders.
Technically, Ethereum continues trading above its crucial 50-day and 200-day moving averages, affirming the underlying bullish structure. However, short-term indicators flash caution with the Relative Strength Index and stochastic oscillator entering overbought territory, suggesting consolidation may precede further advancement.
The dual forces of sustained ETF investment and exchange depletion create substantial liquidity support and market stabilization. Institutional capital continues to function as a foundational pillar for Ethereum’s valuation, with technical and on-chain metrics pointing toward continued upside potential despite near-term volatility.