Ethereum’s price breached the critical $3,550 support level following significant exchange inflows and whale selling activity, signaling potential further declines toward $3,200. The breakdown occurred amid heightened sell pressure as market indicators turned bearish.
Approximately 200,573 ETH flooded into exchanges on August 1st, triggering intensified selling pressure. The bearish momentum was amplified by high-profile transfers including a whale moving over 26,000 ETH to exchanges and BitMEX co-founder Arthur Hayes liquidating 2,373 ETH.
This influx represents a notable shift in market behavior. While Ethereum’s 7-day exchange netflows averaged negative during July, the August 1st spike reversed this trend dramatically toward distribution pressure across trading platforms.
Technical analysis confirms the deterioration, with the Awesome Oscillator dipping below zero and the failed $3,550 defense raising downside targets to $3,200 and potentially $2,936. The breakdown establishes a bearish market structure absent immediate intervention from buyers.
Supporting the technical outlook, declining Open Interest and persistent ETH deposits reflect weakening market sentiment. Short-term price action remains vulnerable to further drops unless substantial buying emerges to absorb current selling pressure.