Ethereum may face downward pressure in August, as the institutional and whale support that fueled its rally to a July peak of $3,800 appears to be retreating.
With bearish sentiment silently mounting across the broader crypto market, the leading altcoin now faces a tougher climb back toward the $4,000 mark.
ETH Futures Sink to $6.2 Billion: Institutional Confidence Losing Steam?
On-chain and derivatives data show a recent trend of decline in activity among the market’s biggest players. For example, open interest in ETH futures contracts on the Chicago Mercantile Exchange (CME) has fallen sharply, closing yesterday at a five-day low of $6.2 billion.
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This drop is notable, as CME’s ETH futures market is primarily used by institutional players seeking regulated exposure to the asset. Therefore, lower open interest signals these investors may be scaling back their ETH positions.
Without continued institutional engagement, the upward pressure on ETH’s price may weaken, increasing the likelihood of short-term corrections.
In addition, whale activity is also tapering off. A review of the coin’s on-chain activity reveals a 339% dip in its large holders’ netflow over the past seven days.
Large holders are whale addresses that hold more than 1% of an asset’s circulating supply. Their netflow tracks the difference between the coins they buy and the amount they sell over a specific period.
When an asset’s large holders’ netflow increases, more tokens or coins flow into major investors’ wallets than are flowing out. This trend indicates that these holders are accumulating the asset, signaling confidence in its future value.
Conversely, when it plunges, it marks a cooling in high-conviction accumulation, weakening short-term price support.
Ethereum Tanks 10% as Selling Pressure Surges—Is $3,314 Next?
At press time, ETH trades at $3,620, down nearly 10% over the past day. During that period, its trading volume rocketed by 17%, creating a negative divergence. This divergence emerges when rising trading activity coincides with falling prices, signaling intensified selling pressure.
If this continues, ETH’s price could fall to $3,524. A breach below this key support floor could lead to a deeper decline to $3,314.
Unstoppable Domains, a global leader in Web3 digital identity, and XYO, a leader in infrastructure layer for the DEPIN economy, today announced the launch of two groundbreaking top-level domains, .DEPIN and .XYO. Designed to accelerate the growth of the rapidly emerging DePIN (Decentralized Physical Infrastructure Network) sector, these domains offer users verified, onchain identities tied directly to real-world infrastructure and data systems.
The launch coincides with a major inflection point for the DePIN industry, which has reached a total market capitalization of approximately $18.8 billion. These networks reward individuals with cryptocurrency for contributing resources like storage, bandwidth, or location data, enabling decentralized alternatives to traditional infrastructure models.
Markus Levin, Co-founder of XYO, emphasized the shift toward utility-driven crypto models: “The next wave of crypto innovation won’t be driven by hype or complexity — but by real-world utility. With DePIN, blockchain fades into the background while data and decentralized resources become the new gold. .DEPIN and .XYO domains give people a verified onchain identity to actively shape the future of decentralized infrastructure.”
As the first DePIN operating system, XYO already empowers millions to contribute verifiable location data via XYO Nodes. The new .XYO domain will give users a direct gateway to the XYO ecosystem, while .DEPIN provides a broader foundation for builders and contributors across the entire DePIN category.
Sandy Carter, COO of Unstoppable Domains, added: “With .DEPIN and .XYO, we’re making onchain participation intuitive, secure, and personal. These domains allow people to own their identity within the growing decentralized infrastructure stack. Our next step — taking these domains to ICANN — reflects our commitment to bridging the gap between Web2 and Web3 naming systems.”
By moving to take both .DEPIN and .XYO through the ICANN application process, Unstoppable Domains and XYO aim to bring decentralized digital identity into the global domain name system — laying the groundwork for mainstream adoption.
Launched in 2018, Unstoppable Domains is an ICANN-accredited registrar and leading digital identity platform dedicated to onboarding the world onto DNS and Web3. Unstoppable Domains provides Web3 domains minted on the blockchain, empowering individuals with full ownership and complete control over their digital identities, with no renewal fees. Users can replace lengthy alphanumeric crypto wallet addresses with easy-to-remember human-readable domain names, streamlining their interactions with apps, wallets, exchanges, and marketplaces. Recognized by Forbes as one of America’s Best Startup Employers for four consecutive years—2022, 2023, 2024, and 2025—Unstoppable Domains has rapidly grown, boasting over 4.2 million registered domains.
About XYO
Founded in 2018, XYO is the first DePIN and one of the largest, with over 10 million nodes. XYO collects and validates real-world data, connecting Web3, Web2, and industries like AI and geolocation. Their Proof of Location and Proof of Origin technologies power real-world asset tracking, DePIN solutions, and interactive gaming experiences. XYO created the COIN app to drive network growth, and their XYO token is listed on major exchanges like Coinbase. In addition to the XYO Foundation, they founded XY Labs Inc., the first crypto company in the U.S. to gain SEC approval for a Regulation A offering, allowing both accredited and non-accredited investors. XY Labs is also one of the first to tokenize and list its shares, trading under $XYLB on tZERO ATS, leading the charge in the RWA wave.
As July comes to an end, several significant developments in the Bitcoin (BTC) market have emerged. Notably, profit-taking pressure has resurfaced in the final week of the month, raising concerns about a potential turning point in August.
Based on analysis from market experts and on-chain data, four main sources of selling pressure could soon shape Bitcoin’s trajectory. Let’s explore each factor in detail.
1. Profit-Taking from Reawakened “Dormant Whale” Wallets
Bitcoin price and inflow/outflow activity from the Galaxy Digital wallet. Source: CryptoQuant
CryptoQuant data shows that large outflows from Galaxy Digital wallets often coincide with Bitcoin price corrections. On July 29, LookonChain continued to detect more outflows, sparking fears of another sell-off.
“Is Galaxy Digital helping clients sell BTC again? In the past 12 hours, Galaxy Digital has transferred out another 3,782 BTC ($447 million), most of which went to exchanges,” LookonChain reported.
Moreover, BeInCrypto reported that two additional dormant wallets—inactive for 6 to 14 years—have become active. SpotOnChain recently reported three dormant whale wallets, possibly tied to a single entity, that moved 10,606 BTC ($1.26 billion) after 3–5 years of inactivity.
An increasing number of awakened whale wallets appear to add selling pressure heading into August.
2. Signs of Selling Pressure from Long-Term Holders
The second source of selling pressure is from Long-Term Holders (LTHs), who are often considered the backbone of the Bitcoin market.
According to a CryptoQuant report, LTHs began withdrawing funds as BTC hovered around the $120,000 mark at the end of July. This behavior may reflect a cautious mindset, where many investors prefer to lock in profits rather than continue holding through potential volatility.
Bitcoin Long-Term Holder Net Position Change. Source: CryptoQuant
“Long-term holders (LTHs) have started to turn net negative right at the $120K resistance — a historically important psychological level. This shift suggests that some investors who’ve held through previous cycles might be starting to realize profits,” analyst Burakkesmeci noted.
In Q1 2025, negative net positions from long-term holders helped drag BTC below $75,000. If this group continues to sell, it could create significant selling pressure, increasing the risk of a strong correction in August.
3. Miner Outflows Are Increasing
The third factor is rising miner outflows — a key indicator of selling pressure from Bitcoin miners.
CryptoQuant data shows that throughout July, BTC outflows from miner wallets started climbing again after a period of decline. This shift marks a possible trend reversal.
Miners often sell when they need liquidity to cover operational costs or when they want to lock in profits after a price rally. If this trend continues, it could amplify selling pressure, especially when combined with the activity from whales and long-term holders.
“The mean amount of coins per transaction sent from affiliated miners’ wallets. If miners send some proportion of their reserves at the same time, it could trigger a price drop,” CryptoQuant explained.
4. Selling Pressure from the US Investors
The Coinbase Premium indicator reflects the price gap between Coinbase and Binance. A negative premium means Bitcoin trades at a lower price on Coinbase, indicating weaker demand or stronger selling pressure in the US market.
This indicator essentially represents the behavior of US investors. Although it remained mostly positive, it turned negative at the end of July.
“Bitcoin Coinbase Premium Gap turned negative again. What does it mean? The demand in the US market is weakening. Caution is necessary,” analyst IT Tech commented.
Historically, a negative premium hasn’t always led to a trend reversal. However, it often signals a slowdown in upward momentum. If selling pressure continues to build, a negative outcome could unfold.
A Reversal Signal from the MVRV Ratio in August
Some analysts are adopting a more cautious stance for August, especially after Bitcoin recorded four straight months of gains.
According to Coinglass statistics, Q3 is historically the weakest quarter of the year. August, in particular, is often the worst-performing month within Q3.
CryptoQuant analyst Yonsei pointed out that the MVRV (Market Value to Realized Value) ratio is approaching a cycle-top threshold. This signal may appear by late August.
During the 2021 cycle, the MVRV ratio formed a double top that accurately predicted the market peak. If history repeats, August could mark Bitcoin’s local top before entering a correction or consolidation phase.
“In short, we’re entering a zone where optimism and caution must coexist. Let on-chain timing guide your strategy — now is the time to tighten risk management and stay nimble,” Yonsei concluded.
“However, the strong liquidity profile, matched with the market’s ability to handle large orders and growing demand from treasury companies, indicates the presence of sophisticated traders. These traders are more price agnostic, which should bode well for BTC’s price action heading into what can be a choppy month,” Kaiko stated.
Although whales, LTHs, and miners may trigger volatility, the current market structure could prevent a severe collapse.
