Bitcoin has been making headlines recently, hitting a new all-time high of over $99,000. This surge in Bitcoin’s price has had a significant impact on the altcoin market, particularly Ethereum. As the second-largest cryptocurrency by market cap, Ethereum saw a boost in its value, reaching its highest level in four months. However, the bullish momentum faced resistance around the $3,400 mark, leading to a drop in price due to heavy selling pressure from short-term holders.
Despite the recent dip in price, analysts remain optimistic about a potential rebound as buyers look to capitalize on the opportunity. The positive netflow in the Ethereum market has strengthened resistance levels, with substantial liquidations involving both buyers and sellers. Coinglass data shows that Ethereum’s total liquidations are approaching $50 million, with buyers accounting for approximately $27 million of that amount.
Additionally, data from IntoTheBlock reveals a notable increase in Ethereum being moved into exchanges, resulting in a positive Netflow metric of 34K ETH. This influx of ETH into the market has created significant selling pressure, leading to repeated price rejections at nearby resistance levels. Furthermore, an Ethereum whale that had been inactive for eight years suddenly reemerged and began selling off $224 million worth of Ethereum, adding to the selling pressure in the market.
Moreover, Ethereum ETFs have seen outflows of $163 million this week, marking the third-largest weekly net outflows. However, a rebound may be on the horizon as the long/short ratio increases, indicating a rise in buying volume at the current dip. As for the future of ETH price, Ether bounced off the 20-day EMA at $3,233 but failed to break through the $3,400 level, triggering a wave of selling pressure.
As of writing, ETH price trades at $3,278, with a slight surge of 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 potentially reach as high as $4,100. However, a breach below $3,000 could invalidate this bullish scenario, potentially leading to a decrease to $2,830, a critical support level for the bulls to defend.