Ethereum is navigating new volatility after weeks of relentless profits and bullish momentum. The world’s second-largest cryptocurrency has surged to its highest level in years, but the Bulls are now trapped in the fight to protect the $4,200 mark. This price range has emerged as a key short-term support, with buyers within the facility continuing to accumulate ETH despite recent turbulence in the broader market.
What stands out at this stage is the exchange inflow activity of Ethereum compared to Bitcoin. Over the past month, the two assets have shown a very different pattern. Bitcoin inflows are relatively moderate, with limited signaling stability and sales pressure, but Ethereum has seen a significant increase in coins moving to exchanges.
This difference suggests a more dynamic market structure for Ethereum. The increased inflow could indicate profits from long-term holders and relocation by large investors preparing volatility in the ETH ecosystem and future catalysts. Still, the agency’s interest continues to support Ethereum’s long-term outlook, along with strengthening fundamentals such as a decline in supply of exchanges. Traders are currently keeping $4,200 and are closely monitoring to see if ETH can hold another leg higher.
Bitcoin vs. Ethereum: Dispersion in Exchange Inflow
According to Cryptoquant’s on-chain data, Bitcoin (BTC) and Ethereum (ETH) show clear divergence in exchange inflows, signaling very different dynamics in market play. Bitcoin inflows remain moderate, with a variance of 12,000-70,000 BTC per day.
There were short spikes around mid-July and August 1, but these movements have not been long enough to suggest a wider trend. This stability means that BTC holders are not in a hurry to exchange, reducing immediate sales pressure. It also reinforces the idea that despite recent price action volatility, emotions around Bitcoin remain relatively stable.
But Ethereum tells a different story. Over the past few weeks, ETH inflows have skyrocketed, with daily exchange inflows rising over 2 million ETH repeatedly in mid-August, approaching 2.6 million ETH. This shows a sharp increase compared to late July, when inflows often fall below the 1.5 million ETH.
Such rising activities suggest that following strong ETH gatherings, they will increase the massive relocation or profits among key owners. The data highlights that Ethereum is entering a more aggressive trading phase, and could introduce short-term sales pressures that could affect price direction.
The divergence is impressive. While the Bitcoin inflow suggests a relatively calm situation, the Ethereum inflow indicates a growing market activity. This imbalance means traders need to closely monitor ETH, as sustained influx of exchanges could cause corrective pullbacks or serve as a stepping stone for new gatherings, depending on how the market digests additional liquidity.
Technical details: Major price levels
Ethereum’s recent price action shows a retracement worthy of attention after weeks of strong bullish momentum. After peaking nearly $4,790, ETH returned to about $4,272, reflecting an 11% decline. The move brought the price back to the key support zone at $4,200. The Bulls are now trying to defend against further downside pressure.
The chart highlights that Ethereum is well above its important moving averages (50, 100 and 200 days), all of which are heading upwards and reinforced the wider bullish structure. Despite the sudden retracement, the long-term trend remains favoring buyers as ETH has maintained a higher and higher low since it reversed earlier this year.
A breakdown below the $4,200 zone could open the doors between $3,800 and $3,900, but it could set the stage for another attempt in the $4,800-$5,000 region. Overall, Ethereum charts continue to show strength, although volatility remains high.
Dall-E special images, TradingView chart
