Ethereum (ETH), the largest altcoin by market capitalization, recorded $14.53 million in net inflows from US spot exchange-traded funds on July 29, supporting a price recovery above $1,900 following an intraday low near $1,856. The figure also underscored how ETF flows and secondary-market positioning can influence near-term trading even when broader crypto sentiment remains mixed.

The inflow data coincided with the launch of Morgan Stanley's Ethereum Trust on NYSE Arca. The MSSE product attracted $5.15 million and generated $19.03 million in first-day trading volume. MSSE carries a 0.14% expense ratio, a level that intensifies fee competition among issuers targeting regulated ETH exposure through brokerage and retirement accounts.

BlackRock's ETHB fund contributed $5.91 million, the largest single-fund inflow among listed Ethereum products on the day. Total assets across Ethereum ETFs remained near $10.5 billion, with cumulative net inflows at approximately $11.21 billion.

Derivatives Activity Reinforces Price Move

Derivatives markets echoed the upward price action. Short liquidations totaled $37.68 million over the latest 24-hour window, marginally exceeding $36.66 million in forced long closures. Binance data identified a $4.74 million ETH-USDT position as the largest single forced liquidation.

The combination of ETF fund creation, short covering, and a defense of the $1,850–$1,880 support zone returned ETH to the spotlight ahead of the Federal Reserve's interest rate decision, a macro event that can affect risk appetite across digital assets and other speculative markets. Traders identified $1,970 as the next significant liquidity threshold.

Large Holder Withdraws 40,000 ETH from Binance

On-chain data revealed that wallet 0x2d59 withdrew 40,000 ETH from Binance in two separate transfers — first 30,000 ETH, then an additional 10,000 ETH. The combined withdrawal was valued at approximately $76.6 million at the time of the transactions, ranking among the day's largest exchange outflows.

Such transfers are typically interpreted as custody repositioning rather than immediate selling, since tokens moved to private wallets can reduce supply available on order books or within automated market makers. The withdrawal occurred while ETH traded near $1,930, close to a resistance zone defined by the 100-day exponential moving average.

Chart data showed that ETH had established higher lows following June's sharp correction and remained above shorter-term moving averages near $1,760 and $1,850. Momentum indicators were constructive but not overextended, with the relative strength index (RSI) near 58.

Whale Distribution Reaches 226,435 ETH

Contrasting on-chain evidence indicated that large investors were also distributing substantially. Whales sold or redistributed 226,435 ETH over a 24-hour period, valued at roughly $430 million at current prices. This cohort retained control of approximately 26.64 million ETH, equivalent to nearly 22% of circulating supply, highlighting the concentrated nature of Ethereum holdings.

Analysts monitoring the flows cautioned that a break below $1,773 could undermine the bullish case. One bearish scenario described the $1,860–$1,955 range as a potential trap preceding a deeper decline toward $1,400–$900.

The optimistic camp pointed to a golden-cross formation and an initial resistance band between $1,980 and $2,080. Some bullish commentators characterized ETH as one of the strongest current trading opportunities, projecting a fivefold move, and argued that a decisive break above $2,000 would clear major overhead resistance. Beyond the $1,980–$2,080 zone, certain chartists identified a potential path toward $2,773 and eventually a renewed push toward the previous all-time-high cycle peak.

Technical Composite and Derivatives Positioning

COINOTAG's proprietary 42-indicator composite S/R scoring engine rated Ethereum as sideways at $1,904.93. The strongest support level at $1,874.65 scored 75/100, derived from S1, SMA 20, and Fibonacci 0.382 confluence. Nearest resistance at $1,924.98 scored 69/100, driven by Flip S→R, LVN, and Swing High signals, while $2,022.10 carried a 62/100 score from R3 and POC.

RSI stood at 56.15, leaving room for further advances, though a bearish MACD tempered momentum signals. Derivatives data showed funding at 0.0038%, open interest at $7.72 billion, and a long-short ratio of 1.64, indicating that 62.1% of accounts were positioned long. The Fear and Greed Index registered at 29, suggesting crowded positioning alongside defensive sentiment.

A close above $1,925 would favor a move toward $2,022, while a loss of $1,875 would invalidate the near-term bullish thesis.

COINOTAG does not provide financial advisory services. This content is for informational purposes only and should not be considered investment advice. Cryptocurrency investments involve high risk.