ETH faces significant resistance above the $3,500 price level.
A massive surge in ETH inflows to derivatives exchanges has been seen.
If ETH drops to $3,100, a whopping $1.9 billion in ETH longs will be wiped off.
Ether (ETH), the native token of the Ethereum blockchain, has shown substantial gains recently after trailing market leader Bitcoin (BTC) for most of the current market cycle. However, ETH is now nearing a crucial resistance level of $3,500, and data suggests the bulls may struggle to break through.
According to a post on blockchain analysis platform CryptoQuant’s Quicktake by Amr Taha, the number of ETH tokens moving to derivatives exchanges is rising rapidly. This significant inflow often indicates that traders are opening short positions, which could hinder Ether’s upward momentum.
Data from Coinglass’s ETH Exchange Liquidation Map shows that $1.93 billion in ETH longs would be liquidated if the price falls to $3,100. Conversely, if the price reaches $3,100, over $760 million in ETH shorts would be liquidated.
Meanwhile, the ETH burn rate is also increasing. The Ethereum network has two “engines” that burn Ether when demand exceeds…
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