- The key support level for Ethereum was at the $3K zone and the main resistance wall was at $3.7K.
- Binance whales continue to put selling pressure on ETH as the price has hit a local low.
Analysis of the “In/Out of the Money Around Price” for Ethereum [ETH] found its main support between $3,030 and $3,130, a zone where a majority of holders had purchased their ETH.
In contrast, the main resistance was between $3,640 and $3,740, above which a continuation of the rally seemed likely.
At the time of writing, 51.58% of ETH’s volume was ‘In the Money’, indicating profitability, while 48.04% was ‘Out of the Money’, reflecting potential selling pressure or losses at higher levels.
Source: Ali Charts/X
“At the Money”’s narrow band around its current price of $3,337.41, which accounts for just 0.38% of volume, suggests a delicate balance. Small price movements are likely to tip the balance.
A break below $3,000 could turn bearish, triggering a bigger sell-off among those in losses. Conversely, a sustained move above $3.7K could confirm a continuation of the bullish trend, which could encourage those with gains to hold on for further gains.
Local bottom under selling pressure from whales?
Ethereum trends on Binance became clear that negative whale activity closely matched falling prices through December.
In particular, during periods when delta values plummeted, significant declines in ETH followed, highlighting the powerful influence of large-scale transactions on sentiment and stability.
Source:
Conversely, positive shifts in whale activity historically indicate potential price rebounds, signaling key times when traders should be on the lookout for trend reversals.
Ethereum’s price action showed a classic double-top pattern, which is a typical reversal signal. This pattern formed peaks around $4K before falling sharply to the neckline around $3.4K, fulfilling the bearish forecast.
The subsequent decline bottomed at $3,200, hitting the expected target of the pattern. When the price reached this low, discussions about Ethereum’s vitality resurfaced, indicating a possible local bottom formation.
Source: Titan by Crypto/X
Historical behavior indicated that such feelings often preceded stabilization or reversal. If the pattern holds, ETH could see a recovery from these levels, indicating a temporary bottom may be in place.
Discover the inflows of ETH ETFs
The Spot Ethereum ETF saw inflows of $130.76 million. This surge in inflows, after a period of fluctuating but generally lower volumes, marked a noticeable spike in investor interest.
These robust inflows into ETH-based financial products indicated growing confidence among investors, which could potentially stabilize or even increase the asset’s price soon.
Source: Sosowaarde
Read Ethereum’s [ETH] Price forecast 2024-25
Historical patterns indicate that previous increases in ETF inflows have often been followed by increases in the price of ETH, indicating that a similar outcome can be expected if the trend continues.
These inflows could therefore indicate bullish sentiment, confirming the local bottom if investor interest continues.