Ethereum is facing the risk of correction after a strong price surge, due to overheated derivative markets and several important resistance points in the price range of $3,750 to $4,100.
The continuous recovery over 7 days with a 27.4% increase has created profit-taking pressure. Although technical indicators such as RSI and CMF have not yet shown overbought signals, the possibility of short-term corrections remains high as large liquidity zones could hinder the upward trend.
MAIN CONTENT
Capital flows from the spot market and institutions are driving Ethereum's price increase, but the overheated futures market poses risks of correction.
Ethereum has continuously increased in price for 7 days with 27.4%, encountering strong resistance levels near $3,750 and $4,100.
The liquidation map indicates that the price levels of $3.8k and $4.1k are points likely to experience corrections and create large liquidity zones.
Is Ethereum likely to correct in the near future?
Experts and market data indicate that Ethereum shows signs of overheating after experiencing a prolonged price surge and encountering strong resistance areas, leading to profit-taking pressure.
Since November 2024, Ethereum has created two lower highs at $2,850 and $3,750 – price levels that determine long-term recovery. Recently, the price of ETH has been steadily increasing and is preparing to challenge the $3,750 level, which is a large liquidity area and could cause a short-term reversal.
"We are seeing a sudden spike in liquidation pressure around the $4,100 level, indicating that the futures market may soon experience a wave of large-scale profit-taking."
James Wang, CEO of Lookonchain, 06/2025
Although the RSI and CMF indicators have not yet entered the overbought zone, the risks from high leverage positions and overwhelming derivative trading volume ensure that caution is necessary when approaching these important levels. Without support from spot trading activity, the market could witness a stronger pullback.
How does capital flow from the spot market and institutions affect Ethereum's price?
Data from spot ETFs shows that a large amount of capital has flowed into Ethereum, playing a crucial role in the recent price increase of ETH. Whales and institutions are also actively increasing their holdings, indicating strong confidence in the long-term outlook.
This is evidenced by Lookonchain's report, where analysts noted continuous buying activity from ETH whale wallets in recent weeks. Concurrently, the high basis level in the derivatives market signals a surge in demand for leveraged long positions.
What important resistance areas and liquidity points should be monitored?
The Coinglass liquidation map over the past year highlights the price levels of $3,800 and $4,100 as strong liquidity magnets, significantly affecting trading behavior. These levels could trigger selling pressure and slow down the upward trend if not convincingly surpassed.
Price Range Type of Liquidity Impact Expected Notes $3,750 Short-term liquidity Strong resistance, may cause correction Second lower high since 11/2024 $3,800 Large futures liquidity Area likely to see profit-taking Based on Coinglass's liquidation heatmap $4,100 High liquidity Strong resistance zone, may be a reversal point Last checked in 12/2024 with prolonged downward volatility
Frequently Asked Questions
Will Ethereum continue to rise or start to decline sharply?
Ethereum still has upside potential if it surpasses the $4,100 zone; however, short-term adjustment risks are high due to overheated derivative cash flows and strong profit-taking pressure.
How does spot ETF capital flow affect ETH price?
Large capital flows from spot ETFs contribute to the price increase of Ethereum as institutions and whales actively buy in, boosting market confidence.
Does trading futures pose risks for Ethereum?
The overwhelming futures market easily creates price bubbles, increasing adjustment risks when leveraged positions are liquidated simultaneously.
What is the current main resistance of Ethereum?
Notable resistance areas are $3,750, $3,800, and $4,100, where many liquidity positions are concentrated and could cause significant volatility.
What part of the liquidation chart reflects market trends?
The liquidation chart shows liquidity hotspots that help predict where trends may reverse or pause, very useful in technical analysis.
Source: https://tintucbitcoin.com/ethereum-tang-gia-nha-giao-dich-can-biet-gi/
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