- Ethereum Futures rose 40% in volume as traders positioned themselves for potential price moves.
- Profit-taking by investors limits a major ETH rally despite increased outflows from exchanges.
Ethereums [ETH] The price is going through a period of volatility, with fluctuating highs and lows in recent weeks.
After a brief dip below $2,600, Ethereum’s price is showing signs of recovery $2,645.52 at press time.
Over the past 24 hours, the price has risen 0.29%, while the past week has seen a small decline of 0.12%. Ethereum’s market capitalization was $318.46 billion, with a 24-hour trading volume of over $17.88 billion.
Important technical levels to watch
Ethereum price is near a critical support level of $2,181.30. This level is reinforced by a rising trendline that has supported the crypto since mid-2022.
Should Ethereum break below this support, the market could see a downtrend, potentially leading to further price declines.
On the other hand, Ethereum is facing resistance around $2,926. A break above this resistance could send the price higher, with a potential target of $3,540.
If buying momentum strengthens, the price could even test previous highs around $4,000.
For bullish investors, the upward trend line will play a crucial role in maintaining market confidence.
Source: TradingView
Ethereum Futures Rise During Times of Volatility
The MACD indicator for Ethereum showed bearish sentiment, with both the MACD line and signal line below zero.
However, if the MACD histogram were to start showing positive movement, it could signal a reversal, which would support a more bullish scenario for Ethereum in the coming weeks.
Recent futures data from Coinglass revealed increased activity in the Ethereum market. Open interest in ETH futures has risen 2.94% and now stands at $12.66 billion, indicating growing interest from traders.
Source: Coinglass
Additionally, ETH Futures volume increased 40.39% to $25.63 billion, while Options volume increased 258.39% to $564.17 million.
These increases reflected rising participation in Ethereum Futures trading, indicating market participants are positioning themselves for potential price movements.
Profit taking, not accumulation
A review by AMBCrypto noted that since late July, Ethereum outflows from centralized exchanges have increased, indicating accumulation by some investors.
However, this accumulation was not as intense as in February or November 2023. Over the past two weeks, net flows have seen a number of positive days, indicating that some holders have taken profits.
While the volume of these outflows is not large enough to indicate an exodus, it does indicate that part of the market is choosing to take advantage of the recent price gains.
Read Ethereum’s [ETH] Price forecast 2024–2025
The netflows data suggests that while there is some accumulation, it may not be enough to spark a major bullish rally for Ethereum in the near term.
Instead, profit-taking appears to be the dominant behavior as some holders benefit from Ethereum’s performance since March 2024.
