Ethereum’s red-hot rally took a breather this week, with prices slipping 2.12% from a high of $3,940 to around $3,788 as of writing. The dip might seem modest on the surface—but in the context of a 55.72% surge over the past 30 days, traders are watching closely. Some technical analysts say this could just be a reset before a bigger move.
The million-dollar question now? Can ETH smash through resistance and touch $4,300 before the weekend.
Inflows Are Painting a Bullish Picture
One reason Ethereum hasn’t totally collapsed after hitting local highs? Big money is still pouring in.
July 28 was a big day for ETH ETF watchers. According to Lookonchain, Ethereum spot ETFs recorded net inflows of 126,429 ETH—roughly $486.5 million. BlackRock’s iShares ETF grabbed the lion’s share of that, scooping up 120,437 ETH. That one ETF alone now holds over 2.92 million ETH, worth more than $11.25 billion.
Let that sink in.
Institutions aren’t just dabbling anymore. They’re making serious bets.
BitMine Immersion Technologies is another example. The firm now holds over $2 billion in ETH and says it’s gunning to control 5% of total ETH supply. It recently wrapped up a $250 million private funding round to double down on accumulation. That’s not retail FOMO—that’s long-term conviction.
But heavy buying doesn’t mean smooth sailing.
Some Are Paying the Price for the Surge
Bullish sentiment hasn’t saved everyone.
In the past 24 hours alone, over $450 million in leveraged crypto positions were liquidated—$136.6 million came from Ethereum trades. Ouch. And of that, more than 78% were long positions. Basically, people got too bullish, too fast, and the market slapped them for it.
Even though prices haven’t plunged dramatically, these liquidations could suggest that ETH’s recent run may have been a little overheated.
• $450 million liquidated across crypto
• $136.6 million came from ETH
• 78% of ETH liquidations were long positions
That’s a lot of pain in not a lot of time.
Charts Still Show Breakout—But Not Without Caution
Let’s talk technicals.
Multiple analysts on Twitter flagged Ethereum’s breakout from a weeks-long consolidation pattern. @Zynweb3 pointed out that previous formations like this one often led to 25–30% gains. Based on that playbook, a surge to $4,300 isn’t outlandish.
Meanwhile, Nishant Bhardwaj shared a chart showing ETH bursting out of a long-term descending wedge. He described it as a “clean breakout,” noting the move was backed by rising volume—always a good sign. But he didn’t ignore the red flags either.
Here’s what he mentioned:
ETH’s RSI on the weekly chart is at 68.91
A reading over 70 is considered overbought
Stochastic RSI is at 98.12—yep, that’s very hot
Some momentum indicators, like the Commodity Channel Index and Momentum oscillator, are starting to cool off or go neutral. Still, the moving averages look strong, which keeps hope alive.
Key Levels to Watch This Week
So, what happens next? A few levels could make or break this rally.
Let’s break it down in a table:
| Price Level | Significance | What to Watch For |
|---|---|---|
| $3,940 | July’s high and current resistance | Break with volume could spark rally |
| $4,300–$4,500 | Near-term bullish targets | Reached only if breakout holds |
| $3,700 | Local support | Losing this level may lead to deeper pullback |
| $3,200 | Major downside target | A failure here invalidates short-term bull case |
Market Sentiment: Still Optimistic, But No Longer Euphoric
Traders are still leaning bullish, but the mood is more measured now. After a month of green candles, Ethereum’s pause has brought reality checks.
This isn’t to say confidence has evaporated. Far from it. ETFs are stacking ETH. Institutions are making bold moves. And technically, the trend is still up.
But overheated momentum and cascading liquidations are telling everyone to keep their seatbelts on.
