- Nearly 100,000 ETH (~$250M) flowed into Binance, raising concerns of increased selling pressure.
- Open interest on Binance lags behind spot price, suggesting weakening market confidence.
- Ethereum trades at $2,451, facing key resistance at $2,455 amid tightening volatility.
- Technicals hint at consolidation; upside possible if ETH breaks above $2,500 with volume.
Ethereum Faces Short-Term Headwinds as Exchange Inflows Rise and Open Interest Falls
Ethereum’s recent rally appears to be losing steam as on-chain and derivatives data point toward increasing caution in the market. Despite briefly rising above $2,500 in late June, Ethereum (ETH) is showing signs of weakening short-term momentum.
According to a CryptoQuant report by contributor Amr Taha, approximately 100,000 ETH — worth around $250 million — were deposited into Binance in two notable waves on July 1. These substantial inflows often precede selling activity, potentially adding downward pressure on Ethereum’s price if market sentiment turns risk-off.
At the same time, Binance Open Interest has been trending downward. While spot prices showed strength with ETH making three consecutive local highs above $2,500, open interest failed to keep up, forming lower highs below $5.6 billion. This divergence suggests fewer new leveraged positions are being opened — a potential red flag for bullish continuation.
Adding to the cautious outlook is the shrinking U.S. Federal Reserve net liquidity, which has fallen from $6.2 trillion to $5.84 trillion recently. Lower liquidity restricts capital availability, typically dampening risk appetite across financial markets, including crypto.
Ethereum is currently trading at $2,451, down 0.5% in the past 24 hours. The price is nearing the 20-day simple moving average at $2,455, a level that has acted as resistance over the past week.
Also Read: Ethereum Accumulation Hits Record High – Is a Breakout Beyond $3K Coming?
Technical Outlook
Ethereum’s price action suggests consolidation, with tightening Bollinger Bands and a Relative Strength Index (RSI) of 48.9 — both indicating low volatility and no clear directional trend. While the Stochastic RSI is nearing overbought levels, potentially capping short-term upside, the MACD and momentum indicators still reflect mild bullish signals.
However, the 10-day and 50-day exponential moving averages offer little support below current levels. A bullish breakout may occur if ETH can push above $2,500 with stronger volume and renewed open interest, targeting the upper Bollinger Band around $2,622. Conversely, if bearish pressure persists, ETH may retest the lower band near $2,287, raising the risk of a deeper correction.
