CryptoPM

$ETH

Ethereum’s 1.12% price dip in 24 hours reflects profit-taking after an 18% weekly rally, amplified by institutional selling and mixed ETF flows.

Ethereum Foundation’s 10,000 ETH OTC sale sparked concerns about strategic selling

$204.9M ETH ETF inflows countered by 69,440 ETH spot market exits

Overbought technicals (RSI7 at 83.4) triggered profit-taking

Deep Dive

1. Primary Catalyst: Strategic ETH Sales

The Ethereum Foundation sold 10,000 ETH ($25.7M) via OTC to SharpLink Gaming on July 10 (Ethereum Foundation). While OTC deals avoid direct market impact, the timing (after ETH’s 18% weekly gain) amplified fears of institutional profit-taking. Concurrently, 69,440 ETH ($205M+) was sold on exchanges despite $204.9M ETF inflows, creating net selling pressure.

2. Technical Context: Overextended Rally

ETH’s RSI7 hit 83.4 (strong overbought) on July 11, its highest since May 2025. Historically, RSI7 >80 correlates with 5-10% corrections as traders lock gains. The MACD histogram (+53.06) shows bullish momentum but has narrowed since July 9, signaling fatigue. Key Fibonacci support sits at $2,820 (23.6% retracement), which ETH tested briefly during the dip.

3. Market Dynamics: BTC Dominance Shift

Bitcoin ETFs saw $1.03B inflows vs. ETH’s mixed flows, driving BTC dominance to 63.67% (+0.17% in 24h). The Altcoin Season Index fell to 27 (-3.6%), suggesting capital rotation toward BTC. ETH’s 24h volume fell 34.8% to $26.5B, indicating weaker conviction during the pullback.

Conclusion

ETH’s dip combines profit-taking from overbought conditions, strategic OTC sales, and shifting capital to BTC ETFs. While the 18% weekly gain remains intact, watch the $2,820 support and ETF flow reversals.

Could ETH’s staking adoption through SharpLink offset near-term selling pressure?

#ETH #Macro Insights# #Altcoin Season#