Key Points
- Ethereum (ETH) has seen a 5.41% surge over the past 24 hours, despite experiencing high pressure.
- Analysts suggest a potential short-term recovery for ETH before another decline.
Ethereum has been under significant pressure lately, yet it managed to surge by 5.41% within the last 24 hours.
Ethereum’s Struggles and Pressures
For the past three weeks, Ethereum has found it difficult to maintain an upward momentum. The cryptocurrency has been trapped in a consolidation range between $3.2k and $3.5k during this period.
CryptoQuant analyst Fost has expressed concerns about Ethereum’s future trajectory. He believes that Ethereum is under immense pressure due to high FUD (Fear, Uncertainty, and Doubt) and bearish sentiment.
Ethereum’s Performance Indicators
Ethereum’s netflow on Binance has been dominated by inflows since September 2024, with six days witnessing inflows exceeding 100k ETH. Additionally, Ethereum’s reserve on Binance surged from 3.6 million ETH in September to 4.3 million ETH, peaking at over 4.5 million ETH.
However, Ethereum’s Open Interest (OI) has declined since December with the 7 EMA crossing below the 50 EMA, indicating a bearish phase. Investors have been cautious, selling to secure profits when ETH has shown slight gains.
Signs of a Short-term Recovery
Despite the pressure, Ethereum’s charts suggest a potential short-term recovery. Ethereum’s Coinbase Premium Index has turned positive after a three-week low, suggesting high demand from U.S. investors and institutions.
Additionally, Ethereum’s Taker Buy-Sell Ratio has surpassed 1 for the first time this week, indicating strong buying pressure. Furthermore, Ethereum’s scarcity is increasing, as shown by a spike in the stock to flow ratio, which suggests increased accumulation.
Potential Future for Ethereum
Despite the current pressures, Ethereum has shown signs of a short-term recovery. Current market conditions suggest a potential breakout from the ongoing consolidation range.
If buyers maintain their current appetite, Ethereum could reclaim the $3,500 mark and aim for a $3,700 resistance level. However, if the market doesn’t respond positively, Ethereum could drop to $3,240, with a further dip to $3,000 possible.
