ETH ETF Inflows & Market Analysis Update

Hey DeFi University Skool Community!

David here, breaking down a video segment (43:46-47:14) on ETH ETF inflows, market trends, and technical indicators from our Market Review live call earlier today.

📊 What I Covered in the Video

We're may potentially see another positive week of ETF inflows while ETH hits resistance at $3850 and with daily RSI at 76 - firmly in overbought territory. The 4H chart could soon be flashing bearish divergence, which typically hints at a short-term sideways move or pullback coming.

My take? I'd be taking profits above $4,100 if inflows push us there. Sure, momentum can stay hot for a while, but history shows us that RSI above 70 often marks pause points.

📍 Historical Pattern: Looking back at early 2024, we had a roughly 20-day period where RSI on the daily remained above 70 however that marked an immediate term top. Right now at 76 on the daily, we're seeing similar conditions. Keep in mind that RSI can remain overbought for a long time. This doesn't mean ETH suddenly reverses.

⚠️ Warning Signal: The potential for bearish divergence on shorter timeframes is particularly interesting - if that were to happen, RSI would be making lower highs and lows while price keeps pushing higher. This usually means we get relief through consolidation.

💡 Bottom Line: Yes, inflows could help ETH break resistance, but endless rips aren't sustainable. Lock in those gains strategically!

📈 Current Market Snapshot (July 21, 2025)

🔥 Price Action: ETH is trading between $3,760-$3,850, hitting a 2025 high of $3,848 today - that's a 26% pump in just a week thanks to the ETF buzz.

💰 Inflow Numbers: Absolutely historic with $2.18B last week according to Bitcoin.com, and some reports showing $4.39B in flows ending today. The surge continues with no reversal in sight.

📊 Technical Readings: Daily RSI readings are all over the place - TradingView shows 63.4 but other analysts are noting extreme levels near 90. When you see 6-7 days above 70, that's typically when tops begin to form.

🎯 What's Next: Combined with the potential for imminent bearish divergence on lower timeframes, we're likely looking at a short-term reversal or sideways action ahead.

🔗 What This Means for DeFi

These ETF inflows are definitely boosting ETH liquidity and TVL across DeFi, but those overbought technicals are flashing warning signs.

⚡ Risk Alert: If we get a correction, leveraged positions and LPs could feel the heat.

🎮 My Strategy: In this maturing bull market, I'm using BTC.d and ETH/BTC as well as momentum indicators to help me determine when to take profits and exit. ETFs might extend this run longer than expected, but the volatility demands we stay cautious.

💬 Let's Get the Discussion Going!

I want to hear your thoughts on all of this:

🚀 On ETF inflows Are you expecting another billion-dollar week? How are these massive inflows changing your ETH exposure strategy?

📈 On the overbought RSI Are you taking profits above $4K like I'm planning, or are you riding this wave? Do these historical topping patterns at 70+ RSI worry you at all?

📉 On the bearish divergence Are you seeing those 4H signals pointing to sideways action or a pullback? What's your game plan for any relief rallies?

🎯 On the bigger picture Do you think ETH is actually breaking resistance here with all these inflows, or are we topping out soon? Where do you think we are in this cycle?

🏛️ On the ETF impact Are ETFs making ETH a more stable asset, or are they actually amplifying volatility in DeFi?

Drop your takes below or jump into the chat - excited to hear what everyone's thinking!

Remember: DYOR and trade smart! 🚀

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