Ethereum is ready to start a new week after a week of price activity that allowed it to reach its highest level since 2021. Spot Ethereum ETFs, which caused billions in inflows, experienced their first daily outflow in over a week. However, order book data reveals a massive sell wall at $4,800 that could provoke a parabolic spike if broken.
Optimism regarding the Ethereum rally faded at the end of the week. On August 15, US spot ETH ETFs recorded net outflows of $59.34 million, breaking an eight-day streak of inflows totaling $3.7 billion.
After failing to break $4,788, which is 3% off the record $4,878, Ethereum dropped to $4,450. The BlackRock ETF recorded $338.09 million in daily inflows, while Grayscale's ETHE and Fidelity's FETH had outflows of $101.74 million and $272.23 million respectively.
Ethereum failed to exceed $4,788, and blockchain data indicates a significant concentration of liquidity. Specifically, Merlin Trader referred to $4,800 as the 'final boss' for ETH, pointing to billions in sell orders on the ETH/USDT pair on Binance.
This zone has many requests on the liquidity map. Ethereum could thrive if it breaks this level, says an expert. As long as this level has additional demand, it could counteract the upward movement.
The liquidity history favors a bullish breakout, but TradingView's research is more cautious. Based on the 4-hour candlestick chart, Ethereum has shown signs of fatigue after a strong run from early August from around $4,700 to $4,800, a barrier with heavy supply.
Technical alignments, including breakout structure signals, fair value gaps (FVG), and Fibonacci corrections, suggest that Ethereum may regress. According to the trading strategy, the entry level is around $4,440, the stop-loss is above $4,790, and the target for a drop is $3,375 at a strong support level. This implies a 20% correction if the bearish forecast is correct.
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