Ethereum is struggling to hold above the $2,000 level as the broader crypto market enters a more fragile phase marked by persistent selling pressure, fading momentum and increased uncertainty. Despite several rebound attempts in recent weeks, price developments have remained subdued, with liquidity conditions tightening and investor sentiment becoming increasingly cautious. The inability to achieve sustained acceptance above this psychological threshold has reinforced the perception that the market is still in a corrective environment rather than moving into a clear recovery phase.
A recent CryptoQuant report provides additional context by highlighting a sharp increase in exchange activity. According to the data, total inflows from Ethereum to Binance over the past 30 days reached approximately $33.3 billion – the highest level recorded since last November. This rise comes as ETH trades near $1,955 after a gradual but persistent decline over the past few weeks.
Historically, increased capital flows to major exchanges tend to indicate an increasing supply of assets available for trading. When large volumes of Ethereum are transferred to platforms like Binance, they can be used for spot sales, derivative collateral, or portfolio rebalancing. Therefore, this rise in capital flows signals increased market activity and potentially increased volatility in the near term.
Foreign exchange flows increase as market tests exert absorption on supply
Although the recent increase in flows from Ethereum to Binance may initially appear bearish, the report emphasizes that this development should not automatically be interpreted as a negative signal. High FX flows can sometimes reflect strategic repositioning rather than an immediate selling intention. Investors may prepare to actively trade, hedge their exposure or adjust portfolio allocations, particularly during periods of heightened volatility when access to liquidity becomes more critical.
In addition, strong inflow phases sometimes preceded periods of price stabilization. When additional supply entering exchanges is met by sufficient demand, markets can move into consolidation rather than a prolonged decline. These dynamics often depend on broader liquidity conditions, derivatives positioning and macroeconomic sentiment rather than capital flows alone.
That said, recording the highest inflow level since last November places Ethereum in a structurally sensitive phase. The market’s reaction to these flows will likely provide clearer directional signals in the coming weeks. If the additional supply translates into continued pressure on the selling side, downside risks could remain elevated. Conversely, if demand effectively absorbs this liquidity, the current phase could represent a redistribution ahead of a more constructive development rather than lasting weakness.
Ethereum price holds shaky ground below key resistance
Ethereum’s weekly chart reflects a structurally fragile environment as the price continues to trade below the psychological threshold of $2,000. After failing to maintain momentum above mid-2025 highs near the $4,800 region, ETH established a sequence of lower highs and lower lows – a classic downtrend formation indicating a persistent distribution rather than consolidation.
Technically, Ethereum is now positioned below its key moving averages, which previously served as dynamic support during the rally phase. These averages have reversed and now function as resistance zones, limiting recovery attempts short of a decisive recovery. The recent rejection near the $3,000 area has strengthened this bearish transition, accelerating the bearish momentum towards the current region around $1,900.
Volume trends show declining participation compared to the expansion phase, suggesting reduced speculative enthusiasm. However, declining volume during corrections can sometimes precede stabilization if selling pressure exhausts.
From a structural perspective, immediate support appears near the $1,800-$1,900 range, where prior consolidation took place. An extended break below this zone could expose deeper retracement levels towards historical accumulation zones. Conversely, it would be necessary to reclaim the $2,200-$2,400 region with significant volume to bring short-term momentum back toward a neutral or constructive bias.
Featured image from ChatGPT, chart from TradingView.com
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