3 July 2025
Ethereum continues to exhibit limited upward price movement despite earlier gains last week. Over the past seven days, the asset has gained only 0.3%, while it declined 0.2% in the past 24 hours.
At the time of writing, Ethereum is trading at $2,436. Notably, the ongoing lack of momentum reflects broader hesitation in the crypto market, even as institutional activity and whale behaviors provide structural support for price levels.
Ethereum Whales Accumulate, Retail Traders Remain Inactive
In a recent market insight shared on CryptoQuant’s QuickTake platform, on-chain analyst Banker described Ethereum’s current phase as a “deadlock.”
According to him, the market is witnessing steady accumulation from large holders, particularly visible through consistent ~60,000 ETH in weekly staking inflows and significant negative exchange netflows, which point to withdrawal activity exceeding deposits.
However, these developments are being met with little to no increased activity from retail investors, creating a state of stagnation rather than bullish momentum.
Banker noted that exchange data shows over 200,000 ETH being withdrawn in recent spikes, likely absorbed by institutional players. On the other hand, retail-driven deposits, which have reached around 100,000 ETH since 2023, are not enough to create breakout pressure.
Daily active addresses remain flat at 300,000–400,000 levels, far below what has historically coincided with strong upward moves in Ethereum’s price. The neutral funding rate of 0.004% further reflects a lack of directional conviction among leveraged traders.
According to Banker, the continued withdrawal activity by whales, combined with stable leverage usage, is creating a kind of supply squeeze that prevents significant downside pressure.
However, without renewed participation from retail investors or a rise in daily address activity above 400,000, Ethereum is likely to remain within a narrow range.
The report concludes that while downside is being contained by large holders, a meaningful breakout would require broader market engagement or a clear external catalyst.
Exchange Activity, Divergences, and Macro Factors Add Headwinds
Meanwhile, in a separate post, CryptoQuant analyst Amr Taha examined Ethereum’s exchange inflows and derivatives data, suggesting the market may be on the verge of short-term volatility.
Taha reported that on July 1, over 100,000 ETH, worth around $250 million, were sent to Binance in two separate transactions. Such large inflows typically indicate selling intentions or a preparation for trades, especially when they coincide with other bearish signals.
Taha also highlighted a divergence between Ethereum’s spot price and Binance Open Interest. While ETH recently printed three local highs above $2,500, Open Interest has continued to decline, forming three lower highs. This lack of confirmation by derivatives traders suggests hesitation to commit to long positions.
At the same time, US Federal Reserve net liquidity has dropped from roughly $6.2 trillion to $5.84 trillion, tightening financial conditions and reducing capital flows into risk assets like crypto.
According to Taha, unless macro conditions improve or Ethereum-specific demand surges, the asset could face downward pressure in the short term.
Featured image created with DALL-E, Chart from TradingView