Ethereum (ETH) has seen a strong recovery in recent trading sessions, surpassing $2,400 thanks to positive Funding Rates on Binance. This shift is a good sign for investors as buying pressure in the market is rising, attracting many long positions. However, trading volume into Binance has also increased, with over 177,000 ETH being transferred in the past three days, raising concerns about profit-taking by large investors. In this context, although market sentiment is favorable for buyers, the increased inflow to the exchange makes traders need to be more cautious about short-term growth.
ETH continues its sustainable growth trend.
Currently, ETH is trading within an upward price channel, having bounced from a lower resistance level near $2,195 and is now stabilizing above the $2,400 mark. The RSI indicator shows that the price is at a neutral level of 47, meaning ETH still has room to move without being considered overbought or oversold. This channel pattern has previously supported upward trends; however, buyers need to defend this area to avoid dropping below $2,200.
Thus, price stability in this range could create a strong upward momentum if market sentiment remains sustained.
Weakness in Ethereum's on-chain activity.
Ethereum's on-chain activity is showing signs of weakening, with a divergence between price and the number of daily active addresses. Although ETH has maintained its price above $2,400, the decline in address count could limit sustained growth momentum. To continue attracting investors, Ethereum needs to increase participation in the network to reinforce its recent recovery.
The decline in address activity indicates that market support is weakening, making it difficult to maintain prices.
ETH's trading activity has sharply declined.
Despite an active technical structure, Ethereum's daily transaction count has dropped to 337,000, a figure much lower than recent averages. This decline indicates a disconnect between price action and actual network usage. Even as traders engage in buying activity using leverage, on-chain activity shows signs of weakening.
If this trend continues, the lack of trading demand could weaken ETH's price increase momentum.
Can buying pressure help Ethereum maintain its price?
Data from CVD indicates that Ethereum is currently experiencing dominant buying pressure. This reflects the confidence of investors who are placing more buy orders than sell orders. Such behavior is often accompanied by short-term upward trends and reinforces current price levels.
However, the decline in derivative trading volume and on-chain indicators could lead to a reversal if buying pressure does not persist. Currently, investors are in a proactive position but require a broad support base to extend the upward trend.
Will ETH maintain its recovery amidst conflicting signals?
Ethereum's recovery above $2,400 demonstrates strength from the technical and derivative markets. However, the weakening of on-chain indicators along with increased inflows to exchanges creates caution among investors. If demand from traders continues and network activity recovers, ETH may continue its upward trend. However, without an increase in the number of addresses and trading volume, price momentum may struggle below $2,500.
Source: https://tintucbitcoin.com/ethereum-thu-thach-ho-tro-2-400-usd/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news on the cryptocurrency market and not miss any important information!
