Analysis of Ethereum [ETH] 'in-the-money' and 'out-of-the-money' reveals that its most significant support level lies between $3,030 and $3,130, where most holders purchased ETH.
Conversely, key resistance levels are found between $3,640 and $3,740; breaking this resistance may sustain the rebound.
At the time of writing, 51.58% of ETH trading volume is 'in-the-money', indicating profitability, while 48.04% is 'out-of-the-money', reflecting potential sell-off pressure or losses at higher levels.
The 'fair value' narrow range near the current price of $3,337.41 accounts for only 0.38% of the trading volume, indicating a delicate balance. Slight price fluctuations could break this balance.
Falling below $3000 may turn bearish, triggering larger-scale sell-offs from those at a loss. Conversely, a sustained breakthrough of $3,700 may confirm the continuation of a bullish trend, encouraging profit-takers to hold for further gains.
Is a local bottom appearing under whale sell-off pressure?
The Ethereum trend on Binance has become clear, as negative whale activity is closely related to the price drop in December.
Specifically, during periods of delta value plummeting, ETH also drops significantly, highlighting the strong impact of large trades on sentiment and stability.
Conversely, historically, positive changes in whale activity foreshadow potential price rebounds, marking key moments for traders to watch for trend reversals.
The price trend of Ethereum exhibits a classic double-top formation, a typical reversal signal. This formation peaks around $4,000 before sharply falling to the neckline around $3,400, aligning with bearish predictions.
The subsequent drop hit a low of $3,200, reaching the predicted target of the pattern. As the price touched this low, discussions about Ethereum's vitality resurfaced, suggesting a potential local bottom may form.
Historical behavior suggests that this sentiment often precedes stabilization or reversal. If this pattern holds, ETH may rebound from these levels, indicating a potential bottom.
Spot ETH ETF inflows
Spot Ethereum ETF inflows amount to $130.76 million. After a period of volatility but overall lower trading volume, the inflow surge marks a significant rise in investor interest.
Strong inflows into ETH-based financial products indicate growing investor confidence, which may soon stabilize or even raise asset prices.
Historical patterns indicate that increases in ETF inflows are often accompanied by rising ETH prices, which means if this trend continues, similar results may occur.
Therefore, if investor interest remains steady, this inflow may signal bullish sentiment, confirming a local bottom.