Recent market movements have put Ethereum's weekly volume in the spotlight as the cryptocurrency experiences notable price swings following a 10% upward surge. The second-largest cryptocurrency by market cap is currently trading near $3,315, showing a 2.1% decline over the past 24 hours amid decreased trading volume.
Market Indicators Paint a Mixed Picture
Technical analysis reveals a bearish double-top pattern formation, traditionally suggesting potential price declines. The pattern coincides with bearish divergence signals on both daily and four-hour charts. However, ETH maintains its position above the 200 Exponential Moving Average (EMA) on the daily chart, indicating sustained long-term upward momentum.
Profit-Taking and Whale Activity
Data from Santiment shows investors have realized nearly $1 billion in profits, marking one of the highest figures in three months. A notable whale movement saw the sale of 73,356 ETH (worth $224.42 million) over two weeks, adding to the selling pressure.
Institutional Flows and Market Sentiment
ETH ETFs have recorded $9 million in outflows on Thursday, extending a six-day streak of negative flows - the longest since August. However, exchange data presents a contrasting picture, with net outflows exceeding 100,000 ETH (approximately $320 million) over three days, suggesting underlying buying pressure.
Critical Price Levels to Watch
The $3,250 level emerges as a critical support point, with analysts suggesting a potential 8% drop to $3,010 if breached. Conversely, a close above $3,400 could invalidate the bearish outlook and spark renewed upward momentum.
Market Dynamics and Future Outlook
The derivatives market shows growing interest, with ETH's open interest reaching an all-time high above $20 billion. Staking metrics indicate recent withdrawals outpacing deposits, while the Mean Coin Age metric suggests increased distribution among holders.
Looking Ahead
While short-term indicators point toward potential price corrections, long-term fundamentals remain robust. Market experts anticipate continued growth through 2024, with possibilities of new all-time highs by 2025, supported by ongoing network upgrades and institutional adoption.
Traders should monitor key price levels, institutional flows, and whale activity while maintaining awareness of broader market conditions affecting ETH's price trajectory.