The bubble chart below illustrates total trading volume across all exchanges, where bubble size reflects volume magnitude and colour indicates the rate of volume change, categorised as Cooling, Neutral, Overheating, and Highly Overheating.
As shown, Ethereum’s approach to the critical $2.5K resistance level has led to an overheating state, characterised by a significant surge in trading volume. This spike is primarily driven by profit-taking activity and the presence of resting supply at this psychologically significant price zone. The overheated condition points to a likely short-term correction as the market cools down, paving the way for renewed accumulation.
Consequently, Ethereum is expected to continue its consolidation phase until fresh demand emerges to drive a breakout above this resistance range in the mid-term.
Written by ShayanMarkets
