Ethereum ($ETH ) trades at $4,290 with overheated futures threatening correction despite strong institutional demand.
Ethereum's price is showing mixed signals right now. The token jumped 2.2% yesterday to trade at $4,290, but dropped 9% over the week despite maintaining a 16% monthly gain. ETH sits just 12% below its all-time high of $4,878 from November 2021.
The problem? Futures trading is getting way too hot while spot markets stay calm - a split that could decide where ETH goes next.
✨ETH Futures Market Flashing Warning Signs
CryptoQuant contributor XWIN Research Japan dropped concerning data on August 21st: exchange reserves ticked up and sell orders are beating buy orders. Futures volume maps show tons of activity clustering around recent highs - a pattern that usually means forced liquidations are coming.
This stretched leverage could push ETH down to $3,950-$4,100 if liquidations cascade. But institutional ETF flows and corporate treasury adoption keep providing solid support for the medium term.
✨Ethereum (ETH) Technical Analysis: Two Scenarios Ahead
ETH's daily chart shows RSI at 57 (neutral) but bearish momentum and MACD signals. Short-term moving averages flash sell signals while longer-term averages (20-200 day) stay bullish. Bollinger Bands are tightening, suggesting big moves coming.
Two scenarios: If futures traders reduce leverage gradually, ETH could break $4,300 and target $4,500. If leverage unwinds aggressively, expect a drop to $3,950-$4,100. Once the technical mess clears, ETH should make another run at $4,300 backed by strong fundamentals.
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