- Ethereum was trading in a key support zone at $2.6k.
- Coinalyze data showed slight bullishness, but this may not be enough to fuel an ETH rally.
Ethereum [ETH] showed a slightly more positive outlook on the chain, and the net flow trends on the exchange showed more consistent accumulation for ETH than for Bitcoin [BTC]. Still, the $2.6k region was a solid resistance zone.
A recent report noted a high-value $32 million Ethereum transaction transferred to Coinbase, which could be the next wave of selling. Will the bulls have to retreat again?
The OBV spiral did not help the bullish case
Source: ETH/USDT on TradingView
The one-day time frame showed a strong bearish market structure for ETH. Furthermore, the OBV has been in a steady downward trend. Despite the $2.2k price increase, the OBV has reached lower highs over the past ten days.
This was a strong sign that the token does not have the demand necessary to initiate a rally.
Any price increase would likely be unsustainable until the OBV changes trajectory to signal buying pressure in the market.
Don’t expect a quick rally yet
The in/out of the money around price showed that the $2540-$2617 was a strong support zone. The resistances above, reaching $2.9K, were smaller but still significant.
The price rise above $2.6K meant that a small majority of addresses that bought in August were in the money.
The negative financing rate was about to shift, indicating that the number of bullish speculators was increasing. The rising CVD also underlined the increased confidence.
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The Open Interest did not experience a major increase and showed that sentiment was neutral to slightly bullish over the past week.
Buyers were ready to go long on any notable price increase, but Ethereum sellers were able to hold on.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer
