Ethereum Faces Potential Downside Risks Amid Increased Exchange Inflows and Bearish Market Signals

Key Points

1. Ethereum price fell below $3,550 on August 1st after 200,573 ETH flowed into exchanges, indicating increased sell pressure.

2. A single whale transferred over 26,000 ETH to major exchanges, and BitMEX co-founder Arthur Hayes sold 2,373 ETH, contributing to bearish sentiment.

3. The 7-day average of Ethereum exchange netflows was negative in July, but the August 1st surge marked a shift toward selling pressure.

4. Technical indicators, such as the Awesome Oscillator dipping below zero and the breach of $3,550, suggest a bearish market structure with potential targets at $3,200 and $2,936.

5. Declining Open Interest and large ETH inflows support the view of a weakening market, with short-term price trends likely to remain downward unless strong buying support emerges.