Ethereum’s Cosmic Plunge: 3 Signs ETH Could Hit $3.2K 🚀📉

by

Key Takeaways

A 200.5K Ethereum inflow to exchanges on the 1st of August, as the price fell below the $3,550 mark, did not bode well for ETH bulls in the short term. Will the price dip continue, and how deep could it go?

Ethereum [ETH] was trading below the $3,550 level that has acted as a support since the 18th of July. If you thought this was a support, you might want to check if you’re still in the right universe. 🌌

The altcoin had formed a short-term range that reached from $3,550 to $3,860. Its descent below the short-term support meant that a move to $3.2k or even $3k was possible. Buckle up; we’re going on a rollercoaster of regret. 🎢💸

Whale and insider moves add to bearish pressure

In a post on X, LookonChain revealed that a whale had deposited 26,182 ETH in 48 hours to popular centralized exchanges, including Binance and Kraken. Because nothing says “confidence” like herding panicked whales toward the exits. 🐋🚨

The timing of this inflow suggests potential sell pressure building. Or, as the universe might say, “Enjoy your new $3.2K reality.” 🧨

Lookonchain also observed that BitMEX co-founder Arthur Hayes had sold 2,373 ETH, worth $8.32 million. He also sold 7.76 million Ethena [ENA] worth $4.62 million, calling into question the assumption of bullish conviction from large ENA holders. Arthur’s clearly trading cryptos for something called “retirement.” 🏙️👴

Adding to the bearish trend, Coinalyze data showed that Open Interest (OI) was down 5.47%, at press time, in the past 24 hours. The Funding Rate was still positive, but the dropping OI and price showed dominant bearish sentiment. Bear markets: because optimism is overrated. 🐻❄️

August begins with heavy Ethereum outflows

According to CryptoQuant, the 7-day average of Ethereum Exchange Netflows remained negative throughout July, printing -16,644 ETH at press time. This indicates consistent accumulation. Or, as the market might whisper, “We’re all just here to accumulate trauma.” 😭

However, the 1st of August saw 200,573 Ethereum flow into exchanges. This was a sign of potential selling, especially when coupled with intense on-chain activity. However, one day’s flow might not decide the price trend. Or maybe it will. The universe is a chaotic dice roll. 🎲🔥

Price targets and structure flip

The market structure could give a better idea of the prevalent trend. At press time, the 12-hour timeframe’s Awesome Oscillator dipped below zero in the most recent trading session. If this doesn’t scream “doom,” you’re doing technical analysis wrong. 📉💀

More importantly, Ethereum had fallen below the range low (orange) at $3,550. The Fair Value Gap (white) at $3.2k, and the support from earlier in July at $2,936, were the next targets for ETH. The 50-period Moving Average (green) has served as a dynamic support in recent hours. Its failure would make the bearish case stronger. And your patience thinner. 🤯

Read More

2025-08-03 00:11