Ethereum stands at a critical crossroads. Short-term technical signals point to an imminent correction, while whale activity and long-term indicators paint a more optimistic picture. This dichotomy creates palpable tension in the market, turning each price level into a decisive battleground between bullish and bearish forces.
From a technical standpoint, several warning signals are flashing. Ethereum has recently reintegrated into its trading range, but is struggling to maintain itself above the key level of $3,215. A bearish divergence on the CVD indicator (Cumulative Volume Delta) suggests that, despite rising prices, selling volume is exceeding buying volume, indicating possible distribution.
If Ethereum is rejected at this level, a drop toward the middle of the range and a significant order block at $2,980 is the most likely scenario. A loss of this support could even trigger a deeper correction toward the bullish trendline at $2,800.
Despite these short-term concerns, the overall picture remains decidedly bullish. The ETH/BTC ratio recently experienced a breakout, a pattern that has historically preceded periods of significant outperformance for Ethereum.
Even more revealing, on-chain data shows that whales are actively moving capital from Bitcoin to Ethereum, with one major player having exchanged over $130 million in BTC for ETH over the past two weeks. This accumulation by major players demonstrates strong conviction in Ethereum’s potential.
It all comes down to Ethereum’s ability to turn the former resistance at $3,215 into solid support. Holding above this level would validate the breakout and pave the way for continued bullish momentum, fueled by capital rotation from Bitcoin to Ethereum. Conversely, a failure to maintain above $3,215 would confirm the bearish signals in the short term and likely trigger the expected correction toward $2,980 or lower.
Ethereum’s current situation is a textbook case of the battle between short-term technical indicators and long-term fundamentals. While traders should remain cautious in the face of correction risk, long-term investors could view any significant dip as a buying opportunity. The underlying strength demonstrated by the ETH/BTC ratio and whale accumulation suggests that the overall trend remains positive. Patience could be the key to capitalizing on the volatility ahead.
These are the final days of the exceptional offer for purchasing a Ledger wallet. $90 in BTC offered or $50 discount for purchasing the Ledger wallet of your choice here:
Related articles:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
