ETH recovers as bulls quell US investor selling pressure
The fall in Ethereum exchange reserve and significant purchasing activity suggest prices may settle shortly.
US investors are driving sell-side pressure on Coinbase Premium Index and Ethereum ETF withdrawals.
Ethereum is recovering but might plummet if prices break $3,014 support.
Ethereum has fallen over 12% following the Fed's aggressive rate reduction announcement for 2025, but it looks to be stabilizing around $3,400.
The continuous outflows across exchanges suggest investors bought the drop, stabilizing prices.
"Ethereum trading volume is up 45% over 24h and almost 70% is buying activity," Unity Wallet COO James Toledano told FXStreet.
The Coinbase Premium Index shows that US investors have led sell-side pressure despite some investors purchasing the drop. The price gap between Coinbase Pro and Binance crypto pairings has been falling, indicating considerable selling pressure among US investors.
Ethereum ETFs show a similar pattern. According to Coinglass statistics, the products saw net withdrawals of $60.5 million on Thursday, breaking their 18-day streak of positive inflows.
"Unless unexpected news sparks volatility, a tranquil spell is probable. "But since pro-Bitcoin Trump will return to the White House on January 20, I expect price movement soon," he continued.
Coinglass data shows $226.45 million in Ethereum liquidations in the previous 24 hours, wiping away $182.4 million and $44.05 million in long and short holdings.
After a double top move on Monday, ETH momentarily fell to $3,108 on Friday, barely short of an earlier projection.
The top cryptocurrency rebounded rapidly as buyers and sellers clashed at $3,400 support. The 50-day SMA below it strengthens this support level.
In the current bearish market, the $3,014 support level, reinforced by the 100-day and 200-day SMAs, may be critical. A significant volume breach of this level confirms a rounded top pattern that might push ETH beyond $2,000 psychologically.
