Yesterday, the market experienced a $500 million bloodbath, largely due to the prevailing “sell the news” attitude ahead of the SEC’s decision on the spot ETF. This sentiment led to major investors acting in impatience, which in turn caused a notable decline in the prices of both Bitcoin and Ethereum from their recent high points. Additionally, recent on-chain data indicates that approximately 1.2 million Ethereum coins were transferred to exchanges within the past 48 hours, a move that considerably weakened the stability of the $2,000 support level.
Ethereum’s Netflow Remains In The Positive Region
In the past 24 hours, Ethereum experienced a significant amount of liquidation, totaling $113 million, with more than $98 million coming from long positions. This substantial liquidation occurred in the wake of Ethereum’s price fall from its $2,400 peak down to a low of $2,100.
Data from IntoTheBlock reveals that over the last 48 hours, there has been a considerable inflow of Ethereum to exchanges, amounting to 1.281 million ETH, valued at approximately $3 billion. This influx is due to holders increasingly transferring their Ethereum to exchanges with the intention of selling during the price dip. Such a massive movement of assets to exchanges has hindered any potential bullish recovery beyond the $2,400 mark.
Additionally, the likelihood of further bearish trend in the market is on the rise, as evidenced by a steady increase in Netflow over the last few days, according to data from IntoTheBlock. After experiencing a low point of -39K ETH on December 31, there’s been a significant change in the movement of Ethereum. More Ethereum is being transferred to exchanges as the incoming volume begins to surpass the outgoing volume.
As a result of this shift, Netflow has entered a positive phase, currently standing at 32K ETH. On the flip side, this scenario could also be perceived as bullish due to a significant increase in the outflow of Ethereum during the price drop, which has maintained a stable Netflow. Notably, the outflow in the last 48 hours reached an impressive $2.8 billion. This indicates that the decline of Ethereum’s price to the $2,100 level presented a lucrative opportunity for smart investors. This investment behavior has contributed to Ethereum’s price recovery, allowing it to rebound and reach the $2,250 level.
What’s Next For ETH Price?
There was an attempt by bulls to push Ethereum’s value past the $2,400 resistance level. However, the long wick indicates that there was selling pressure at these higher price points. Later, Ethereum’s price sharply declined, falling below its moving averages and touching the low near $2,100. As of writing, ETH price trades at $2,232, declining over 6% in the last 24 hours.
A slight positive aspect is the buyers’ response; they stepped in to buy the dip at the $2,100 mark and are now making efforts to maintain the price above $2,200. However, bears continue to pose risks near the 61% Fib channel.
The recent price movements suggest that the ETH price might continue to fluctuate within the $2,100 to $2,450 range for some time. For a more massive correction to occur, dropping to $1,900, the bears would need to drive the price below $2,000. In this case, ETH price hover around the $1,800 level.
Conversely, if the price climbs above $2,450, it could pave the way for a surge towards the ascending resistance line at $2,600. In such a case, we might see ETH price surging toward the $3,000 mark.
