Bitcoin recently reached a new all-time high of over $99,000, sparking a significant surge in the altcoin market. Consequently, Ethereum, the second-largest crypto by market cap, climbed to its highest value in four months. Although there was an increase in open interest, bearish pressure from short-term holders introduced solid resistance around the $3,400 mark, leading to heavy selling and a drop in price. Nevertheless, analysts anticipate a robust rebound as buyers capitalize on the dip.
Positive Netflow Strengthens Resistance Levels
In the past day, the Ethereum market has experienced substantial liquidations involving both buyers and sellers. According to Coinglass, Ethereum’s total liquidations are approaching $50 million, with buyers accounting for the majority, approximately $27 million.
Furthermore, IntoTheBlock data indicates a notable increase in Ethereum moving into exchanges, with the Netflow metric rising to a positive 34K ETH, suggesting that inflows are exceeding outflows by this amount. This influx of ETH into the market is creating significant selling pressure, leading to repeated price rejections at nearby resistance levels.
Additionally, an Ethereum whale that had been inactive for eight years suddenly reemerged and began selling its holdings. According to available data, the whale utilized multiple addresses to offload $224 million worth of Ethereum.
This whale had initially accumulated 398,889 ETH for approximately $2.4 million between January 18 and March 10, 2016, with an average purchase price of $6 per token. After eight years of inactivity, the whale became active again and started to sell off its holdings.
Also read: Dormant Billion-Dollar Ethereum Whale Books Profit!
Additionally, data from SosoValue indicates that Ethereum ETFs have seen outflows of $163 million this week, marking the third-largest weekly net outflows. This recent wave of outflows from Ethereum ETFs follows a record-setting influx of $515.17 million in one week, the highest since their launch.
However, a rebound may be imminent as the long/short ratio increases, suggesting a rise in buying volume at the current dip.
What’s Next for ETH Price?
Ether bounced off the 20-day EMA at $3,233 but failed to break through the $3,400 level. This triggered a wave of selling pressure, resulting in a drop below immediate resistance level. However, buyers are currently preparing for a strong rebound. As of writing, ETH price trades at $3,278, surging over 0.5% in the last 24 hours.
The upward trend of the 20-day EMA and the Relative Strength Index (RSI) in the positive territory suggest that the path of least resistance is upwards. If buyers can hold above $3,400, the ETH/USDT pair might climb to $3,900 and could reach as high as $4,100.
Conversely, this bullish scenario could be invalidated if the price declines and falls below $3,000. In that case, the pair might decrease to $2,830, a critical level for the bulls to defend. A breach below this support could shift the advantage to the bears.
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