Ethereum ETF outflows raised fresh doubts about institutional demand after U.S. spot ETFs saw a net $70.7 million exit on July 24. BlackRock’s fund took the biggest hit, with investors pulling $52.8 million. That broke a streak of steady inflows and made some people wonder if big holders were cashing out.
But one trading session doesn’t always mean a trend has flipped, especially after weeks of consistent institutional buying. It’s possible this was just a cautious move near a key price ceiling. Still, if similar withdrawals keep happening over the next few days, it could weaken bullish sentiment and put more pressure on Ethereum.
Exchange inflows add another layer of caution
On-chain data also showed a subtle shift. Ethereum recorded a net $5.92 million flowing into exchanges during that same session. Positive netflows usually mean more ETH is moving onto trading platforms, increasing the amount available to sell. While this inflow wasn’t huge, it broke the recent pattern of stronger outflows that had previously limited selling pressure.
That said, the numbers are still far below the kind of big exchange inflows that usually signal aggressive selloffs. So buyers still have a chance to absorb this extra supply before it seriously changes Ethereum’s market structure.
Ethereum loses steam as bears target lower support
Price action tells a similar story. Ethereum got rejected pretty hard after testing the $1,950 resistance zone. Sellers stepped in quickly and ended the short recovery. This pushed price out of its ascending channel, suggesting bullish momentum is fading.
The RSI dropped to 54.05, staying below its moving average of 59.40, which indicates buying strength is weakening. Price also started making lower highs after that rejection, reinforcing the bearish outlook. So $1,800 is now looking like the next support level to watch. If selling pressure picks up after hitting $1,800, Ethereum could slide further toward $1,700, where the next big demand zone might attract buyers.
Liquidity clusters point toward Ethereum’s next move
Looking at the Binance Liquidation Heatmap, there’s concentrated liquidity both above and below the current price. That suggests volatility could spike once a cluster gets hit. The biggest short liquidation zone sits around $1,875 to $1,890, with more liquidity stretching to $1,920 and $1,930. A bullish move into that area could trigger forced short covering, adding fuel to the upside.
On the downside, there’s another significant liquidity pocket near $1,830 to $1,840, where long positions might get liquidated if sellers take control. Since price is stuck between these dense zones, there’s no clear directional advantage right now. Whichever side absorbs liquidity first will likely decide the next major move, as leveraged traders react to forced position closures.
In the end, Ethereum faces increasing headwinds from the ETF outflows and slight exchange inflows. But price is still holding above key support despite the rejection below $1,950. If buyers can regain control and break back above that resistance, a bullish continuation is still possible. Otherwise, sustained selling could push ETH toward $1,800 before any stronger recovery emerges.
