The key support level for Ethereum is located at the $3K region, while the key resistance wall is at the $3.7K level.
Binance ‘whales’ continue to apply selling pressure on ETH as price finds local bottom.
The ‘In/Out of the Money Around Price’ analysis for Ethereum [ETH] shows that the most significant support lies between $3,030 and $3,130, which is the area where the majority of investors have been buying ETH.
On the upside, key resistance levels range from $3,640 to $3,740, above which could signal a continuation of the bullish momentum.
At the time of writing, 51.58% of ETH volume is ‘In the Money’, indicating profit, while 48.04% is ‘Out of the Money’, indicating possible selling pressure or losses at higher prices.
Source: Ali Charts/X
The narrow “At the Money” band around the current price of $3,337.41, holding just 0.38% of volume, shows a delicate balance. Small price movements have the potential to tip the scales.
A break below $3K could turn bearish, triggering a larger sell-off from those holding losses. Conversely, a sustained move above $3.7K could confirm a continued uptrend, encouraging those with profits to hold on for further gains.
Local bottom amid selling pressure from whales?
Ethereum Trends on Binance Make It Clear That Negative Whale Activity Is Closely Correlated With Price Decline Throughout October February.
Specifically, during periods of sharp delta drops, ETH also drops significantly, highlighting the profound impact of large-scale transactions on sentiment and stability.
Source: X
Conversely, positive changes in whale activity often suggest a potential price recovery, marking important times for traders to watch for trend reversals.
Ethereum's price action has shown a classic double top pattern, a classic reversal signal. The pattern formed peaks around $4K before falling sharply to the neckline around $3.4K, fulfilling bearish predictions.
The subsequent drop hit a low of $3,200, hitting the predicted pattern target. As the price hit this low, discussions about Ethereum’s survival resurfaced, suggesting the possibility of a potential local bottom forming.
Source: Titan of Crypto/X
Historical behavior shows that these sentiments often precede stabilization or reversal. If the pattern holds, ETH could rebound from these levels, suggesting that a temporary bottom may have formed.
Spot ETH ETF Inflows
The Ethereum Spot ETF saw an increase of $130.76 million in inflows. This wave of inflows, after a period of volatility but generally lower volumes, marks a notable increase in investor interest.
These strong inflows into ETH-based financial products indicate growing investor confidence, which is likely to stabilize or even increase the value of the asset in the coming period.
Source: Soso Value
Historical patterns show that previous surges in ETF inflows have typically been followed by increases in ETH prices, suggesting that a similar outcome can be expected if the trend continues.
This wave of investment could be a signal of bullish sentiment, confirming the formation of a local bottom if investor interest persists.
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