Ethereum is holding steady above the $3,150 level as the market transitions to a more bullish phase after weeks of heavy selling pressure and fear-driven liquidation. The recovery has sparked debate among analysts, with some seeing the rebound as nothing more than a relief within a broader bearish trend, while others believe Ethereum could lay the foundation for a more sustainable recovery.
Related reading
A new CryptoQuant report offers one of the clearest insights. According to Ethereum data on Binance, recent weeks have seen increased volatility in the Cumulative Volume Delta (CVD) – a measure that tracks real-time buying and selling pressure. This volatility reflects sharp, rapid shifts in trading behavior as the market tries to stabilize.
Although Ethereum is still in a downtrend from its August peak, recent CVD spikes indicate the return of notable buying activity. However, the report emphasizes that these bursts of demand are only sporadic and lack the sustained strength needed to confirm a full bullish reversal.
CVD volatility highlights the ongoing battle between buyers and sellers
According to the Arab chain reportEthereum’s CVD recently turned positive, coinciding with the price’s attempt to stabilize above the USD 3,100 level. This shift signals new liquidity entering the market through short-term buy orders, suggesting some traders are stepping in to accumulate during dips.
However, the sudden spikes and rapid pullbacks within the CVD show that the market remains locked in a powerful tug-of-war between buyers and sellers. This volatility underlines the fact that Ethereum has not yet achieved temporary stability or a clear structural trend.
The report also highlights the importance of the 30-day correlation between price and CVD, which has remained stable at around 0.6 despite lower price levels. This relatively high value shows that liquidity flows continue to influence Ethereum’s price direction in a meaningful and consistent manner. Although the buying pressure appears erratic, the recurring impact on price indicates that traders are still actively responding to market conditions.
Overall, this pattern reflects investors trying to take advantage of the volatility, especially as anticipation grows around the potential inflow of liquidity from upcoming network upgrades. Still, Arab Chain emphasizes that without a more sustained accumulation phase and reduced short-term selling, Ethereum could struggle to generate a decisive upward move.
Related reading
Ethereum is trying to recover, but is facing significant resistance
Ethereum’s latest price action shows a tentative recovery as ETH climbs back above the $3,150 level, but the chart shows that the broader structure remains vulnerable. After a steep decline from October highs around $4,500, ETH found support just above $2,700, where buyers stepped back in on higher volume – visible in the recent wave of green candles at the bottom of the chart. This response signals renewed interest at lower levels, but not yet a decisive trend shift.
The price is now pushing against the 100-day SMA (red line), a level that previously acted as support and has now turned into resistance. Regaining this line would be an important step toward restoring bullish momentum. Above that, ETH faces a new barrier at the 50-day SMA (blue line), which continues to decline, due to continued medium-term selling pressure.
Related reading
Despite the recovery, volume remains inconsistent, indicating hesitation among market participants. ETH will need stronger follow-on buying to challenge the next resistance zone around $3,300-$3,350, a region that is in line with previous breakdown levels.
Featured image of ChatGPT, chart from TradingView.com