Ethereum holds near $1,800, but a clear divide is forming between institutional and retail investors. As large amounts of money flow back into Ether ETFs, small traders appear to be getting nervous and selling amid the recent rally. At press time, ETH had gained around 1.1% over the past day, contributing to strong double-digit monthly returns. But the feeling beneath the surface may be changing.
Institutional buying returns to Ethereum ETFs
One of the most encouraging signs for Ethereum this week came from institutional flows. According to SoSoValue, US spot Ethereum ETFs saw weekly net inflows of $84.4 million, marking the first positive week in nine. This turnaround is notable because institutional investors have mainly sold since the launch of the funds. On just one day last week, July 9, net sales reached $52.08 million as ETH fell to $1,748.
This type of reversal often suggests that big players are recalibrating their outlook. This could mean new demand, which would sometimes support the price rally, at least in the short term.
Retail traders are going the other way
On the other hand, retail investors appear to be betting against Ethereum. Over the past 24 hours, the trading volume in the perpetual futures market has increased. The Long/Short ratio has fallen to 0.946, indicating that there are more sellers than buyers. When this ratio falls below 1, it generally indicates increasing bearish pressure.
The concern is particularly strong on major exchanges like OKX and Bybit. Data from CoinGlass shows that whales on these platforms carry an extremely bearish label. OKX alone controls around $4.10 billion in perpetual trading volume, while Bybit manages $1.19 billion. A bearish stance from these high-liquidity players adds more leverage to ETH and could push the price lower.
Short sellers take big positions
At least one trader appears to be acting on this sentiment. A short position worth $12.43 million was opened against Ethereum, betting on further losses. Short sellers suffered some damage, however. Total liquidations show that short traders lost $11.49 million over the period, while long traders lost $8.30 million. The market is always more bearish than bullish.
It’s worth noting that while retail and highly leveraged traders are bracing for a decline, they could be the ones put under pressure if institutional buying continues. The balance between these two forces will likely determine ETH’s next direction in the near term.
