$ETH own token of the Ethereum blockchain, recently showed significant growth after lagging behind the market leader Bitcoin (BTC) for most of the current market cycle. However, ETH is now approaching a critical resistance level at $3500, and data suggests that bulls may struggle to break through it.
According to Amr Tahi's report on the blockchain analysis platform CryptoQuant's Quicktake, the number of ETH tokens being moved to derivatives exchanges is rapidly increasing. This significant inflow often indicates that traders are opening short positions, which could hinder Ether's upward momentum.
Coinglass's ETH Exchange liquidation data shows that long positions in ETH worth $1.93 billion will be liquidated if the price falls to $3100. Conversely, if the price reaches $3100, short positions in ETH worth over $760 million will be liquidated.
Meanwhile, the burn rate of ETH is also increasing. The Ethereum network has two "engines" that burn Ether when demand exceeds supply — blockspace burning and blobspace burning. As the amount of ETH being burned increases, investors expect the altcoin to surge.
