• Ethereum price recovery is poised to challenge a key resistance level at $3,740 amidst the formation of a flag pattern.
• ETH’s net taker volume plunged into the negative region, indicating the aggressive selling pressure in the market.
• Lookonchain data reveals that whale crypto wallets have transferred a million dollars’ worth of Ethereum to crypto exchanges.

ETH, the native cryptocurrency of the smart contract giant Ethereum, records a 1.75% jump during the U.S. market hours. With the intraday surge, the Ethereum price is likely to challenge a key resistance zone at $3,740, signaling a pivot level for the asset to determine its next move. However, the on-chain data highlights that whales and retail traders are rushing to exit the market, reinforcing the selling pressure in price. Is a breakdown below $3,500 looming?

Negative Net Taker Volume and Whale Selling Suggest Deeper ETH Correction 

In the last two weeks, the Ethereum price has shown a brief correction from $3,940 to the current trading price of $3,684, projecting a 6.5% loss. The pullback initiated with broader market sentiment for a post-rally correction, but bears gained additional momentum amid the aggressive selling pressure from market participants.

In a recent post, market analyst Maartunn highlighted that ETH’s net taker volume has dived deep into negative territory, currently sitting at -$418.8 million. This metric highlights the disparity between aggressive buyers and sellers in the market, who prefer quick market orders over waiting for limit orders. 

When net taker volume skews negative, it indicates that sellers are currently the aggressive force in markets, typically a precursor for a a potential downturn. According to CryptoQuant data, the taker sellers have offloaded 104.3k more ETH coins than the buyers are willing to absorb.

The sharp disparity suggests that the participants are prioritizing the speed of execution over the suitable price exit, subtly resembling panic selling. If the trend persists, Ethereum’s short-term outlook would continue to remain under pressure as sellers’ influence dominates.

Adding to the bearish note, the blockchain tracker LookonChain reveals a notable selling pressure from high-net-worth investors in today’s market.

Earlier today, a crypto whale wallet, 0x46DB, deposited 5,504 ETH, valued at around $19.89 million, to the OKX exchange.

In addition, another wallet, 0xc156, deposited 13,459 ETH (worth approximately $49 million) to the Binance exchange just 20 minutes before reporting.

Historically, a distribution phase from crypto whales has often been accompanied by a major market correction and continues to correct in price.

Also Read: MetaMask, Stripe Prepares to Launch Stablecoin “mmUSD”

Ethereum Price Stands at a Pivot Level of a Flag Pattern

The ongoing correction trend in Ethereum price has found a temporary bottom at the $3,365 level before driving a sharp reversal. The bullish upswing pushed 9.3% up in the last 4 days to currently trade at $3,673. If the renewed recovery persists, the buyers could challenge a key confluence of horizontal resistance level and downsloping trendline of the flag pattern at $3,740. 

A potential breakout below this barrier would accelerate the market momentum and boost the price for an initial surge towards $4,150. 

On the contrary, the current market uncertainty and mounting selling pressure from whales and retail traders signal the risk of a potential reversal. If the coin price displays a renewed selling pressure at $3,740, the sellers could push for a prolonged downtrend below $3,537 and $3,365 support.

Also Read: Solana Price Signals 7% More Pain as Bulls Lose Control of Key Support

• The Solana price rides a midterm recovery trend within a rising wedge pattern.
• The number of active addresses on the network has declined by 18% over two weeks, indicating a clear slowdown in user engagement. 
• The SOL price breakdown below the 200-day EMA slope signals a potential 7% decline in the near future.

SOL, the native cryptocurrency of the Solana network, plunged over 3.87% during the U.S. market session and traded at $1.65. The bearish pullback has nearly evaporated the entire Monday market gain of this altcoin, signaling the continuation of the prevailing correction. The declining trend in the number of active addresses on the network and the open interest derivative market further reinforces the bearish momentum in price. Is the SOL coin heading below $150?

Solana Price Breaks Below Crucial $165 Support Amid User Activity Slump 

In the past two weeks, the Solana price showcased a significant correction from $205.75 to the current trading price of $162.28, registering a 21.13% loss. Initially, the selling pressure came as a post-rally correction in the broader market but gained additional bearish momentum amid the notable decline in the number of active addresses on the SOL network.

According to TheBlock data, the active addresses on Solana have dived sharply from 3.53 million to 2.89 million, now registering an 18.1% loss.

This decline suggests a notable slowdown in user engagement and transaction throughput in the Solana network. The drop can be attributed to risk-off sentiment in the market, resulting in decreased DeFi activity. If the trend continues, Solana’s network momentum may face a short-term setback, potentially limiting its price recovery prospects.

Additionally, a recent tweet from market analyst Ali Martinez highlighted that the $165 level stands as a crucial support level for Solana price with potential resistance levels at $177 and $189. According to the UTOX realized distribution data (URPD), over 44.4 million Solana tokens, i.e., 7.42% of the current supply, were acquired near the $165 level, marking its area of interest for traders.

However, with the intraday sell-off, the coin price breaks below the $165 support to currently peak at the $162 mark. This bearish breakdown flips a strong demand zone into a potential resistance, reinforcing the risk of further correction.

As the market uncertainty persists, a potential uptick to $165 could allow the mass volume of holders to sell their coins at breakeven, notably accelerating the market selling pressure.

Also Read: Bitcoin Demand Remains Resilient Amid Price Volatility; $125K BTC Soon?

SOL Drive Prolonged Correction With Wedge Pattern

The daily chart analysis of Solana price shows a V-top reversal from the resistance trend line of a rising wedge pattern. Since March 2025, the coin price has been resonating between the two converging trendlines of the pattern as it drives a steady mid-term uptrend in price. 

Currently, the falling SOL price teases a breakdown below the 200-day Exponential Moving Average— a level that offers a general sentiment in the market for an asset.

If the breakdown sustains, the sellers could push another 7% drop to hit the pattern’s lower boundary at the $150 mark.

Having said that, the bottom support trendline has acted as a strong accumulation zone for buyers to recoup the bullish momentum. Historically, a reversal from this support has bolstered a recovery trend, offering a growth within a range of 63% to 97%.

Until the price breaks below the lower trendline of the wedge pattern, the coin price could hold its broader bullish trend.

Also Read: MetaMask, Stripe Prepares to Launch Stablecoin “mmUSD”

• The Ethena price correction resonating within the flag pattern could drive a temporary pullback in the near term with potential breakout loading.
• Since last month, Ethena’s USDe supply has bounced 75% to reach $9.29 billion, becoming the third-largest stablecoin by market cap.
• Since mid-July, the total volume locked (TVL) on ENA bounced from $5.48 billion to $9.65 billion, accounting for 75% growth.

ENA, the cryptocurrency of the synthetic dollar protocol Ethena, shows a slight uptick of 2.5% on Monday, August 5th. The intraday buying pressure aligns with the broader market relief rally after a significant correction last week. If the upswing manages to overcome the prevailing selling pressure, the enterprise could resume its downtrend and challenge a breakdown below $0.5. However, the on-chain data highlights a significant supply growth in USDe, indicating rising investor confidence in Ethena’s ecosystem and a strong capital inflow. Will fundamental growth push ENA to a $1 rally?

Ethena Price Correction Deepens as On-Chain Data Signals Continued Selling Risk

Over the past week, the Ethena price has shown a brief correction from $0.7 to the recent correction low of $0.51, accounting for a 27% loss. While the downswing followed a broader market pullback, the recent on-chain data reveal a notable increase in ENA exchange inflows, signaling the risk of a prolonged correction.

In a recent tweet, market analyst Ali Martinez highlighted that over 250 million ETH has been sent to exchanges in the last two weeks. A surge in ENA transfer to exchange implies rising selling pressure as investors may be preparing to offload holdings amid the market uncertainty.

The four-hour chart analysis of ENA price shows the current correction resonating within the formation of a bull-flag pattern. The chart setup is characterized by a long ascending pole reflecting the dominating trend in the market, followed by a temporary pullback within two downsloping parallel trendlines.

Currently trading at $0.6, the coin price is just 6.8% short of challenging the flag’s resistance at $0.64. A potential breakout from this resistance will accelerate the buying pressure and push ENA to a $0.7 rally.

However, if the supply pressure at the dynamic resistance persists, the coin price will drive another bearish swing within the pattern and challenge a bearish move below the $0.5 psychological support.

Also Read: Bitcoin Demand Remains Resilient Amid Price Volatility; $125K BTC Soon?

ENA Poised For Breakout From Cup And Handle Pattern 

Despite the anticipated price correction, Ethena’s synthetic dollar stablecoin, USDe, has recorded a staggering 75% surge in supply over the past month, according to DeFiLlama data. The supply has now reached $9.29 billion, pushing USDe above Sky Follow (USDS) to become the third-largest stablecoin by market cap.

Simultaneously, Ethena has been steadily climbing the DeFi ladder to become the sixth-largest protocol by total volume locked (TVL), accentuating the growing user confidence and capital influx into the platform. 

The sharp rise in supply and TVL indicates a substantial capital rotation among Ethena’s ecosystem, with yield-hungry DeFi natives and risk-conscious stakers being drawn to the protocol. 

The daily chart analysis of ENA price shows that the recent pullbacks within flag patterns could bolster buyers to complete a cup-and-handle reversal pattern. The chart setup is characterized by a long-accumulation trend with a U-shaped recovery followed by a temporary pullback to recuperate the exhausted bullish momentum.

Thus, a potential breakout from the $0.7 neckline will signal a major change in market dynamics. The post-breakout rally could push the price over 64% to hit the initial target of $1.15.

Also Read: CFTC Introduces Spot Crypto Trading Under Federal Oversight

• The Bitcoin price is nearing a bullish breakout from a bullish continuation pattern called a ‘flag.’
• BTC’s apparent demand shows a positive flag with over 160,000 accumulated since last month.
• OTC BTC reserves have dropped from 550,000 BTC in September 2021 to 140,000 BTC now.
• Accumulator addresses have increased their holding by 50,000 BTC over the past 30 days.

The pioneer cryptocurrency Bitcoin shows a slight uptick of 0.68% during Monday’s U.S. market hours. The buying pressure came as a relief rally in the broader market after a significant sell-off last week. If the pullback recovers the selling pressure in BTC, the coin price could resume its correction trend and head for the $110,000 breakdown. Despite the market fear of a prolonged downturn, the on-chain data highlights intact demand pressure for Bitcoin from new investor accumulators and institutions. Is it a rally to a $125,000 close? 

BTC On-Chain Metrics Signal Strong Demand and Accumulation

Over the past 3 weeks, the Bitcoin price showcased a notable correction from a $123,236 high to a recent low of $114,887, accounting for a 9.18% loss. The selling pressure came as a post-rally pullback for buyers to recoup bullish momentum. However, with the formation of a fresh lower high swing in BTC’s daily chart, the crowd is starting to worry about a prolonged correction trend in price. 

Despite the recent turbulence in Bitcoin price, on-chain data shows that investors’ demand remains strong and supports a potential uptrend in the near term. According to a recent insight shared by CryptoQuant Analyst Darkfost, multiple indicators confirm a substantial appetite for BTC acquisitions in short-term and long-term trends.

One key metric compares new BTC issuance with over 1-year inactive supply. If the resulting ratio is positive, it indicates more coins are being locked up than spent, signaling a next accumulation trend. According to the recent data, the demand remains clearly positive, as around 160,000 BTCs were accumulated over the past 30 days. Thus, the browser investor base is still adding coins to their positions rather than exiting.

Another crucial indicator is the accumulator address, which highlights the addresses that have only acquired BTC without selling any, giving us an insight into both demand and holding conviction. Over the past month, the average Bitcoin accumulated by these addresses has surged roughly 50,000 BTC, showing a steady buying behavior despite the recent price volatility.

Meanwhile, in the over-the-counter (OTC) market—where institutions and large buyers primarily move Bitcoin supply—holdings have recorded a sharp decline. In September 2021, this desk held over 550,000 BTC, which has currently dropped to just 140,000 BTC, a sign that supply from institutions is tightening. Fewer coins on the OTC desk means less sell-side pressure and potentially tighter supply going forward.

Thus, the demand-side metric shows no major red flags for BTC despite the recent price pullback. With the accumulation trend pressure intact at retail and institutional levels, the coin price could hold key support levels and drive a bullish reversal.

BTC Price Near Flag Pattern Breakout

The four-hour chart of Bitcoin price shows the formation of a bullish continuation pattern called a ‘flag.’ The chart setup is commonly spotted in an established uptrend for buyers to recapture the bullish momentum.

Currently trading at $115,244, the BTC price is less than 2% from challenging the upper boundary of the pattern. A potential breakout will signal the continuation of the prevailing recovery and bolster the asset for a $123,236 high and chase $125,000.

Also Read: Final Pullback Before XRP Price Takes $4?

• The XRP price call to the 50% retracement level signals a healthy pullback for buyers to regain bullish momentum
• The flag pattern formation in the daily chart accentuates a temporary pullback before a potential breakout.
• The declining trend in XRP’s open interest and an anticipated dive of the funding rate into the negative region indicate a weakening bullish momentum.

On August 3rd, the XRP price witnessed a notable rebound of +5.4% to reach a $2.9 trading value. The buying came as a relief rally in the broader market, as a majority of major assets showed a sudden uptick after a sharp sell-off. While the Ripple crypto follows a similar momentum, the declining trend in derivative market data signals a risk of prolonged correction. Will this correction extend below $3, or will buyers have an opportunity to counterattack?

XRP’s Derivative Metrics Turn Bearish:

In the past two weeks, the XRP price witnessed a significant correction from $3.65 to a $2.7 low, registering a 25% loss. The selling pressure follows a post-rally correction sentiment in the market, indicating a cool-off period for buyers to regain bullish momentum.

However, the derivative market decline recorded a notable drop, along with price signalling a cautionary action from traders amid market uncertainty.

According to Coinglass data, XRP futures open interest has dropped from $10.94 billion to $7.05 billion, projecting a 35.6% drop. This significant decline in OI suggests mass liquidation or unwinding of positions in the futures market. This cooling of speculative interest could act as a precursor to a continued correction trend unless strong buying pressure returns.

In addition, the XRP OI-weighted funding rate has started to shrink near neutral travel. Though the intraday gain has pushed the metric to 0.0051%, if the broader market correction persists, the XRP’s funding rate could turn negative.

If materialized, this negative metric should indicate that short sellers are paying a premium to longs for holding their position, accentuating their confidence for a potential fall. As the majority of players are betting on further price decline, the current bearish momentum accelerates the prolonged downward drive.

Thus, until these metrics show a sharp upswing to signal the revival of prevailing market recovery, the Ripple crypto could decline further.

XRP Price Drives Current Correction Within Flag Pattern

The four-hour chart analysis of the XRP price shows the recent correction resonated within two downsloping trendlines, revealing the formation of a bull flag pattern. The chart setup is characterized by a long ascending pole, which denotes the dominating trend in the market, followed by a temporary pullback to regain the bullish momentum. 

The chart setup is commonly spotted in the middle of an established uptrend to stabilize the price before the next leap. In addition, the pullback is backed by a declining trend in trading volume, further accentuating the weak conviction from sellers to sustain lower prices.

With an intraday gain of 5%, the XRP price tried to sustain above the 50% Fibonacci retracement level. Historically, the Fibonacci levels of 23.6%, 38.2%, and 50% have offered buyers strong pullback support. As the coin price holds above the daily exponential moving averages of 50, 100, and 200, the long-term trend is bullish.

Currently trading at $2.91, the XRP price is just 1% away from challenging the pattern’s resistance trend near the $3 psychological barrier. A potential breakout above this floor will signal the accelerating bullish momentum and drive a potential rally above the $3.65 high to hit $4.

However, with the declining trend in XRP’s future open interest, the anticipated breakout could be delayed and drive another bear cycle within the flag formation.

Also Read: Bitcoin Price Faces $110 Breakdown Amid U.S.-Russia Nuclear Tensions and Fresh Tariffs

Key Highlights:

• U.S. President Donald Trump has announced a fresh wave of reciprocal tariffs on several countries, which officially took effect at midnight on August 1.
• Trump recently shared on the Truth Platform that he ordered two nuclear submarines to be positioned in the “appropriate regions” amid the escalating tension with Russia.
• The Bitcoin price teases a bearish breakdown below the support trendline of the bull flag pattern, hinting at the mounting selling pressure in the market.
• The BTC price positioned above the 50, 100, and 200 daily exponential moving averages indicates the broader bullish trend is intact.

The pioneer cryptocurrency Bitcoin dives 1.67% during Friday’s U.S. market hours to trade at $113,847. This selling pressure came around the escalating war of words between US President Donald Trump and the Deputy Chairman of the Russian Security Council, Dmitry Medvedev. The bearish momentum further accelerated as Trump announced new reciprocal tariffs on several countries, which went live on August 1st at midnight. The BTC price currently teases a bearish breakdown from the support trendline of the bull flag pattern, signaling a risk of prolonged downfall. 

Bitcoin Price Reacts to U.S.-Russia Nuclear Warnings

Since mid-July, the Bitcoin price has been wavering between the two horizontal levels of $120,000 and $117,000, which has accelerated the broader market uncertainty. However, the market selling pressures suddenly accelerated in the last 48 hours, and the Bitcoin price plunged from $117,833 to the current trading price of $113,967, accounting for 3.28%.

This bearish momentum can be attributed to escalating geopolitical tensions between the United States and Russia. On Thursday, former Russian President Dmitry Medvedev issued a stark warning to Donald Trump, urging him to consider “how dangerous the fabled ‘Dead Hand’ can be,” which refers to Russia’s Cold War-era nuclear deterrent system.

In a recent Truth post, Trump called Medvedev’s statement “highly provocative” and said, “I ordered two nuclear submarines to be positioned in the appropriate regions.” 

As tensions escalate between the two nations amid talks of nuclear weapons, the crypto market is beginning to feel the pressure.

The selling pressure further accelerated as Trump recently imposed a massive amount of new reciprocal tariffs on several countries. The new tariff took effect at midline on August 1, 2025.

BREAKING: President Trump imposes a massive amount of new reciprocal tariffs including:

1. Canada: Tariffs raised from 25% to 35%
2. Switzerland: 39%
3. South Africa: 30%
4. Taiwan: 20%
5. Vietnam: 20%
6. Cambodia: 19%
7. Thailand: 19%
8. Malaysia: 19%
9.…

— The Kobeissi Letter (@KobeissiLetter) July 31, 2025

Also Read: India’s Forex Reserves Climb to $698.19 Billion: RBI Report

BTC Price Teases Breakdown Below Bullish Flag Pattern

The daily chart analysis of Bitcoin price reveals that the recent market correction has resonated within two downward-sloping trendlines of a flag pattern. The chart setup is characterized by a long ascending trend called a pole, which highlights the dominating uptrend in price, followed by a temporary pullback to regain bullish momentum. 

Historically, the pattern has commonly emerged within an established uptrend to recoup the bullish momentum for a higher rally. 

With an intraday loss of 1.6%, the coin price teases a bearish breakdown from the pattern’s lower boundary at $113,270. A bearish breakdown from a renowned bullish pattern would signal the increasing seller’s strength and a risk of prolonged price correction.

If materialized, the BTC price could plunge to the next immediate support of $110,519, followed by a dive to the $105,200 level.

However, the BTC price is still positioned above the 50, 100, and 200 exponential moving averages, which indicates the broader market sentiment is bullish.

On the contrary, if the coin price manages to retain the flag structure, the current correction may prolong but gradually recoup the exhausted bullish momentum for the next leap.

Also Read: Mill City Injects $450M into SUI Treasury Strategy as Price Faces Bearish Breakdown