Key Highlights
- ETH declined 2.4% to reach $1,872 following a reversal after CPI data wiped out gains above $1,900
- A small uptick in exchange reserves to 15.13 million ETH suggests light selling activity
- Small investors offloaded 160K ETH while large holders added approximately 100K ETH in the past week
- Spot Ethereum ETFs in the US recorded $244.9 million in net inflows last week, followed by minor outflows this week
- Critical support level lies at $1,875, while resistance zones appear between $1,920 and $1,955
Ethereum experienced a 2.4% decline on August 13, sliding from a session peak of $1,918 down to $1,872. The pullback occurred as market participants took profits following the US Consumer Price Index (CPI) announcement, eliminating ETH’s earlier momentum.
The July inflation figures revealed headline CPI increased 0.1% from the previous month and 3.4% compared to last year. Core CPI climbed 0.2% monthly and 2.5% on an annual basis. These numbers met analyst forecasts precisely, providing no catalyst for sustained upward movement.
ETH had advanced prior to the announcement, touching approximately $1,918 before encountering selling activity. After breaking below the $1,887 mark, limited order book depth facilitated a swift descent to the $1,872 zone.
Bitcoin maintained its position around $64,000 following the release, demonstrating that the inflation data failed to significantly influence appetite for leading digital assets.
Blockchain Metrics Suggest Bearish Sentiment
Blockchain analytics revealed fragile market conditions preceding the downturn. The 14-day moving average for ETH Exchange Netflow turned positive, signaling slight selling dominance. Exchange holdings increased marginally to 15.13 million ETH, a pattern that has previously corresponded with heightened distribution pressure.
The Coinbase Premium Index declined further to -0.081, despite improvements in US equity markets. This indicates American cryptocurrency investors continue exercising restraint.
Smaller wallets containing between 100 and 10,000 ETH distributed a total of 160K ETH during the previous seven days. Meanwhile, whale addressesāthose holding 10K to 100K ETHāadopted a contrasting strategy, adding approximately 100K ETH throughout the same timeframe.
Spot Ethereum exchange-traded funds in the United States attracted $244.9 million in net capital last week. This week has witnessed modest withdrawals totaling $8.9 million thus far.
Market analyst CryptoGoos observed on X that despite ETH reaching a fresh low, distribution from long-term participants has diminished while accumulation has risen, creating a higher low. CryptoGoos characterized this pattern as a bullish divergence signal.
Important Technical Zones Under Focus
The daily timeframe reveals Ethereum positioned near the $1,875 Murrey Math support threshold. Daily Chaikin Money Flow registered -0.04, providing a marginal advantage to sellers. The 4-hour Relative Strength Index measured 45.15, beneath the neutral 50 threshold, reflecting subdued momentum.
Liquidation statistics from CoinGlass identify a substantial concentration between $1,945 and $1,955 above the current valuation. Downside liquidation clusters exist around $1,850 and $1,835.
Market participant Ted Pillows stated ETH must recover $1,920 before any advance toward $2,000 becomes feasible. Technical analyst Daan Crypto Trades examined the ETH/BTC trading pair, pinpointing 0.03 BTC as the critical threshold required to validate relative outperformance versus Bitcoin.
CryptoQuant researcher MorenoDV highlighted that ETH’s Net Unrealized Profit/Loss metric on Binance is nearing the -0.35 threshold, a figure that historically coincided with significant market bottoms during late 2019, March 2020, and throughout 2022.
ETH was trading around $1,879 during publication, maintaining its position above both the 20-day exponential moving average at $1,884 and the 50-day exponential moving average at $1,865.
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