Ethereum shows signs of accumulation with major liquidity zones around $3,000 and $3,800, hinting at an imminent market move.
Analysts highlight Ethereum’s low funding rates as a signal of untapped upside potential in the current market setup.
Social and trading volume cooldown could trigger a second bullish wave, as retail exits and institutional interest start rising again.
Ethereum is already in a healthy state of correction following a strong 70% rally. The market is now in a sideways movement pattern, which is an indication that the asset can now be ready to experience a sudden upward breakout.
Price Accumulation Could Trigger a Breakout
Analyst Ted noted that Ethereum is “yet to enter the banana zone,” suggesting the most aggressive part of the rally is still ahead. He believes the current correction is a standard pause after a massive move, allowing for accumulation before ETH breaks above the critical $4,100 resistance.
https://twitter.com/TedPillows/status/1948030945019506974
He further observed that major liquidity zones exist around $3,000 and $3,800. These levels are acting as magnet zones where both buyers and sellers are active, indicating that Ethereum is preparing for a high-volatility move in the near term.
Ted added that once Ethereum clears the $4,100 mark, the market should expect “the most violent rally,” implying a potential continuation of the long-term bullish trend.
Derivatives Market Signals Further Upside Potential
Crypto Rover pointed out that funding rates for Ethereum remain low, far from the elevated levels seen in previous bull cycles. This shows that traders are not overly leveraged, and the market is not currently overheating.
This setup leaves Ethereum with room to rise significantly without triggering mass liquidations. Low funding rates often serve as a base for sustained growth since they reflect cautious but optimistic sentiment across derivatives markets.
Social Sentiment and Volume Hint at Incoming Move
Santiment reported a 5.8% drop in Ethereum’s price ratio against Bitcoin over the past 60 hours. They noted that earlier in May, a similar volume spike driven by fear of missing out (FOMO) led to a local top.
https://twitter.com/santimentfeed/status/1948156978632773832
However, Santiment added that if trading and social volumes continue to decline this week, it may indicate that retail traders are stepping back. Historically, this has paved the way for Ethereum to begin a second bullish wave, as long-term holders and institutional participants re-enter.
Ethereum is now in a phase of calm before potential storm — with $4,100 serving as the key breakout trigger.
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