Ethereum Correction Deepens, But Smart Money Buys Signal Possible Rally Ahead
The post Ethereum Correction Deepens, But Smart Money Buys Signal Possible Rally Ahead appeared on BitcoinEthereumNews.com.
Altcoin Analysis Ethereum’s price decline deepened on August 2, slipping 4% over the past 24 hours to around $3,500, extending its 7-day loss to 6.3%. The drop comes as Ethereum exchange-traded funds (ETFs) recorded their first net outflow in 20 days, signaling a pause in institutional accumulation after weeks of strong inflows. ETF Outflows Break Positive Streak On August 1, Ethereum ETFs saw $152.3 million exit the market, despite $5.43 billion pouring in during July. Analysts attribute this shift to profit-taking after ETH’s 34% surge over the past month. Data from Coinglass suggests that $257 million worth of ETH long positions could be at risk if prices test $3,424, adding pressure to the market’s short-term outlook. SharpLink Gaming’s $52.6 million ETH purchase continued corporate interest in the asset. However, the buy was not enough to counterbalance the selling pressure from larger market players. Correlation With Bitcoin Adds Downside Risk ETH’s 90-day correlation with Bitcoin remains high at 0.89, meaning Bitcoin’s price movements heavily influence Ethereum. Bitcoin’s own decline below $116K (-2.6% in 24h) triggered cross-market liquidations, further weighing on ETH. Weak U.S. jobs data—just 73,000 jobs added in July versus 200,000 expected—also spurred concerns about stagflation, leading to risk-off sentiment across financial markets. This shift in sentiment is visible in the Fear & Greed Index, which dropped from 57 (Greed) to 51 (Neutral) in recent days. Technical Levels to Watch Analyst Michaël van de Poppe, who predicted a correction last week, pointed to a lower time frame bearish divergence as the key signal. He identifies $3,300 as the first major support zone, giving it a 70% probability of sparking a short-term bounce. A break below this could push prices into the $3,000–$3,100 range, which he considers the best long-term entry point for the second half of 2025. Van de Poppe’s…
