- Ethereum Futures experienced a 40% rise in volume as traders prepared for possible price fluctuations.
- Investor profit-taking is curbing a significant ETH rally, despite notable outflows from exchanges.
Ethereum’s [ETH] price is currently undergoing a volatile phase, marked by alternating highs and lows over the past few weeks.
After briefly sinking below $2,600, Ethereum’s price has started to rebound, currently trading at $2,645.52 at the time of this report.
In the last 24 hours, the price has risen by 0.29%, while the past week recorded a slight decrease of 0.12%. Ethereum’s market capitalization stands at $318.46 billion, with a 24-hour trading volume exceeding $17.88 billion.
Important technical levels to monitor
Ethereum’s price is hovering around a crucial support level of $2,181.30, which has been bolstered by an ascending trendline that has supported the cryptocurrency since mid-2022.
If Ethereum were to drop below this support level, it could trigger a bearish trend, potentially leading to further declines in price.
Conversely, Ethereum is facing resistance around $2,926. A breakout above this resistance could propel the price upward, targeting the $3,540 mark.
Should buying momentum continue, the price might even revisit previous highs near $4,000.
For bullish investors, the upward trendline will be critical in sustaining market confidence.
Source: TradingView
Ethereum Futures thrive amidst volatility
The MACD indicator for Ethereum currently reflects a bearish sentiment, with both the MACD line and the signal line situated below zero.
Nevertheless, if the MACD histogram starts to demonstrate positive movements, it could hint at a potential reversal, supporting a more bullish outlook for Ethereum in the coming weeks.
Recent futures data from Coinglass indicated heightened activity within the Ethereum market. Open Interest in ETH futures has increased by 2.94%, now amounting to $12.66 billion, signaling growing trader engagement.
Source: Coinglass
Furthermore, ETH’s Futures volume has soared by 40.39% to $25.63 billion, while options volume has surged by 258.39%, reaching $564.17 million.
These increases indicate a heightened level of participation in Ethereum Futures trading, with market participants strategizing for potential price movements.
Profit-taking over accumulation
AMBCrypto’s analysis observed that since late July, Ethereum outflows from centralized exchanges have risen, pointing to accumulation by certain investors.
However, this accumulation has not reached the intensity seen in February or November 2023. In the last two weeks, netflows have experienced several positive days, indicating that some holders are cashing in on profits.
Though the volume of these outflows is not substantial enough to imply a mass exit, it does highlight a segment of the market choosing to capitalize on recent price gains.
Read Ethereum’s [ETH] Price Prediction 2024–2025
The netflow data suggests that while there is some degree of accumulation, it may not be enough to spur a significant bullish rally for Ethereum in the near future.
Instead, profit-taking appears to dominate as various holders take advantage of Ethereum’s performance since March 2024.
Dutch
English
French
German
Greek
Italian
Portuguese
Russian
Spanish