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Conflicting Market Data Emerges as Ethereum Pulls Back Below $2,500

Recent drops in ETF activity and exchange deposits contrast with a broader year-long reduction in exchange-held supply.

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Ethereum dropped 3.7% from its late-August high of $2,558 to around $2,463, coinciding with a broader pullback across risk assets and precious metals. The decline has brought forward contrasting signals regarding whether the recent rally is losing steam.

Short-term indicators point to cooling participation. Spot Ethereum ETF inflows declined from $234.5 million on August 27 to $87.7 million by August 31, with daily trading turnover almost halving to $742 million, according to SoSoValue. Concurrently, the Coinbase Premium Index slipped into negative territory, and Lookonchain reported that a large holder deposited 70,739 ETH out of a 167,855 ETH position onto exchanges, leaving 97,115 ETH in reserve.

Despite near-term pressure and macroeconomic headwinds tied to hawkish Federal Reserve expectations, longer-term metrics show structural firmness. Total ETH held across exchange reserves stands at 14.92 million, down from roughly 16.9 million coins in January, extending a multi-month supply reduction.

How this piece reads Sell tone -1
Site call on Ethereum Buy score 56.7

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