ETH ignited the altcoin frenzy, with a market value soaring to 230 billion
Ethereum surged 47% in just five days, leading the entire altcoin market. In contrast, Bitcoin only increased by 7.9%, with its market dominance dropping from 65.36% to 62.38%. During this period, the market cap of altcoins skyrocketed by $232 billion, and the capital flow dynamics underwent a dramatic change.
ETH's strong rise has attracted retail investors, accompanied by capital inflows and some selling behavior from centralized exchanges, indicating that there is certain pressure behind the current uptrend.
Technical indicators are signaling bullish momentum, but risks remain.
On the 1-day chart, ETH is close to the Fibonacci 50% retracement level ($2774), which may become a pivotal point for bulls and bears.
After a long decline, the OBV has significantly rebounded in recent months, with the CMF recording +0.25 and sustained net inflows. The MFY indicator is also rising, with no signs of a top divergence yet.
These indicators collectively suggest that Ethereum still has room for upward movement. However, the risk of liquidation at high levels cannot be ignored.
Liquidation charts reveal risk points, with intense liquidity gaming.
According to Coinglass data, large-scale short liquidations have not yet been triggered, indicating that the market has not released its full upward potential. However, if the price falls to the $2400 or $2500 range, it will trigger high-leverage long liquidations, leading to 'southward liquidity chasing'.
The six-month heatmap shows that $2900 has become a strong liquidity magnet. ETH will eventually reach this level, but whether it can break through this point depends on whether BTC and macro factors can resonate and drive it higher.
January's heatmap reveals that liquidations in the $1800 to $1900 range triggered a rise, and a similar trend has recently emerged. Currently, a new liquidity gathering is forming below $2700, and after a short-term consolidation, it may surge again.
Whales are cashing out, and volatility may occur before $3000.
Despite strong overall capital inflows, whales have recently started to partially cash out. Investors should be cautious of a profit-taking wave as prices approach the psychological resistance level of $3000. Without new positive drivers, it is possible that ETH could fall into high-level oscillations or even retest $2750 for support.
Currently, ETH stands at a crucial decision point: Is $3000 the starting point for accelerating a new round of explosions, or a high-pressure line triggering profit-taking? The market may soon provide an answer.
