Will Ethereum's price soar? Perhaps, but traders should be cautious...

Key Points

A significant influx of spot trading and corporate purchases has strengthened bullish confidence in Ethereum's rise, but an overheated futures market may pull back from slightly above $4,000.

Ethereum #ETH is overheated, with 95% of the supply in profit, both of which suggest that market fatigue and profit-taking activities may hinder further bullish momentum, though large participants have continued to accumulate recently.

High spot ETF inflows also help explain the surge in Ethereum's price.

Derivatives dominate ETH's daily trading volume, intensifying concerns that this trend could trigger a bubble. The soaring fundamentals highlight the demand for leveraged long positions in ETH. If spot trading remains inactive, the risk of a deep correction will only increase.

Is Ethereum about to give back its gains?

On the weekly chart, the two lower highs Ethereum has established since November 2024 are key to its rebound. These two highs are marked at $2,850 and $3,750 in white. In fact, Ethereum seems poised to break through the second key resistance level, which would further indicate bullish confidence.

However, traders need to be a bit cautious. Ethereum has risen for seven consecutive days, with an increase of 27.4%. The $3,750 area appears to be a liquidity treasure, and a bearish reversal may occur in the short term.

But technical indicators have not yet shown this. For example, the RSI has not entered the overbought zone, and the CMF has not yet broken above the +0.05 level.

The liquidation heat map over the past year highlights the $38,000 and $41,000 areas as the next magnetic zones.

These areas may be where Ethereum's trend could stop and trigger a correction. To the south, there is also some important liquidity space before the $2,000 mark.

Ethereum may consolidate around $4,000 for a while before starting the next wave of increases. The liquidity to the south is between $3,500 and $2,800, and unless there is new volatility, it may not be tested in the short term. Bitcoin [BTC] faces selling pressure and has fallen below $116,000. #姨太 #币圈起伏落袋为安