U.S. spot Ethereum ETFs recorded a net outflow of $70.7 million on July 24, renewing questions about institutional demand after a period of sustained inflows.

BlackRock accounted for the largest portion of the withdrawals, with investors pulling $52.8 million from its ETH fund. Because spot ETFs offer a regulated route for investors to gain Ethereum exposure without directly holding the asset, their daily flow data is closely watched as a gauge of institutional participation.

The move interrupted a stretch of consistent inflows and drew attention to whether larger investors had begun taking profits. Still, a single trading session does not necessarily define a broader trend, particularly after several weeks of institutional accumulation. ETF flows can shift quickly around major price levels as investors rebalance exposure or reduce risk.

The latest withdrawals therefore indicated that some investors had taken a more cautious position as Ethereum traded near key price resistance. Ethereum came under closer scrutiny, as continued ETF outflows could reduce institutional demand and weigh on bullish sentiment if similar withdrawals persisted in the following sessions.

Exchange inflows add to caution

On-chain spot flow data showed a related shift, with Ethereum recording a $5.92 million net inflow into exchanges during the latest session.

Positive netflows generally mean more ETH moved onto exchanges than left them, increasing the amount of supply available for trading. Although the inflow was relatively modest, it contrasted with the recent pattern of stronger exchange outflows, which had previously helped limit immediate selling pressure.

The ETF withdrawal and the positive spot netflow pointed in the same direction, suggesting that fresh supply had begun returning to the market. However, the figures remained well below the larger exchange inflows often associated with aggressive selloffs.

As a result, buyers still had room to absorb the added supply before it meaningfully changed Ethereum’s broader market structure. Traders would need to see whether exchange balances continued to rise or quickly returned to outflows to judge whether the shift was temporary.

Ethereum weakens after rejection near $1,950

Ethereum faced a firm rejection after testing the $1,950 supply zone, where sellers regained control and stopped the recent recovery attempt.

That rejection pushed the price out of an ascending channel, indicating that bullish pressure had weakened. The RSI fell to 54.05 and remained below its 59.40 moving average, showing that buying strength continued to fade rather than improve.

Price action also began forming lower highs after the rejection, adding to the bearish structure. With downside pressure building, $1,800 has emerged as the next likely support level.

Based on the current structure, a move toward that level appeared increasingly probable. If selling pressure accelerated after Ethereum reached $1,800, the asset could continue lower toward $1,700, where the next major demand zone may attract renewed buying interest.

Liquidity clusters may shape the next move

The Binance Liquidation Heatmap showed concentrated liquidity above and below the current market price, suggesting that volatility could rise if either cluster came under pressure.

The largest short liquidation zone appeared around $1,875 to $1,890, with additional liquidity extending toward $1,920 and $1,930. A move into those levels could trigger forced short liquidations and add momentum to further upside.

On the downside, another significant liquidity pocket formed around $1,830 to $1,840, where long positions could face liquidation if sellers strengthened control.

Because Ethereum was trading between these dense liquidity zones, it did not show a clear directional advantage. The side that absorbs liquidity first would likely influence the next significant move as leveraged traders respond to forced position closures.

Overall, Ethereum faced increased pressure after ETF investors withdrew $70.7 million and exchange inflows signaled more available supply. Even so, the price continued to hold above key support despite the rejection below $1,950.

If buyers regain control and reclaim that resistance area, bullish continuation would remain possible. Otherwise, sustained selling pressure could push Ethereum toward $1,800 before any stronger recovery attempt develops.