Will Ethereum Price Pick a Side Based on Exchange Reserves Pattern?
Jun 06, 2025 am 10:30 AM
Ethereum price recently hovered in a sensitive area, especially with the price pushing above $2600. This was because it recently interacted with a descending resistance line that was part of its wedge pattern.
Recently, the price of Ethereum (ETH) has been hovering in a sensitive area, especially as it pushes above the $2,600. This is because it is now testing the resistance of the descending line that is part of the wedge pattern.
This resistance retest sets the stage for two potential price outcomes. From the chart, we can see that ETH could either achieve a bullish breakout or capitulate in favor of a retracement.
It is also worth noting that the price of ETH has been ranging between the $2,400 and $2,700 levels in the last 3 weeks as the bulls and bears faced off.
While this scenario underscores the bull’s inability to sustain a strong momentum, it also signals that ETH holders are not selling aggressively. A sign that they are still optimistic about ETH’s ability to extend recovery from the 2022 bear market.
In addition, ETH has been moving deeper into the wedge pattern’s tight squeeze zone, raising the expectations of a drastic directional move. But which direction will price likely lean?
Can Ethereum Price Pick a Side Based on Exchange Reserves Pattern?
Earlier this year, it was seen that ETH exchange reserve support and resistance patterns significantly influenced price movements. If that remains the case, then it may offer insights into ETH’s next possible move.
Now, if we look at the chart of ETH exchange reserves, we can see that they retested a 3-month support on Wednesday. It has since bounced back slightly in the last 24 hours, revealing that the rate of ETH flows onto exchanges was on the rise.
This pivot is in line with the balance between exchange inflows and outflows, with the former outpacing the latter in the last 24 hours. This suggests that ETH could be headed for more selling pressure in the coming days if market conditions remain constant.
In addition, the rising sell pressure came at around the same time that the market sentiment had been cooling down.
However, on the other hand, Ethereum demand from institutions has mostly remained positive for the most part in the last 7 business days. BlackRock remained the most dominant buyer, and this may have helped sustain short-term confidence despite the total crypto market sentiment index declining.
This was aided by the rising on-chain activity, which could potentially inject some confidence into the market. But is this observation enough to offset potential downside risks associated with the increasing selloff?
ETH Price Risks High Volatility and Potentially Large Liquidation Event
While a directional outcome is still a toss-up, market data highlighted the possibility that the directional outcome could be extremely pronounced.
For example, ETH open interest has been rising aggressively in the last 4 weeks. It peaked at the tail end of May and remained high at around $35.8 billion at the time of observation.
The high levels of open interest suggest that a directional spike could potentially trigger heavy liquidations. This, in turn, could force a short squeeze if prices rally higher or a long squeeze if a bearish outcome occurs.
The possibility of a bearish outcome was on the rise at the time of observation. This is due to the fact that spot outflows approached $200 million in the last 24 hours at the time of observation.
There was also a 10.42% spike in derivatives volumes, suggesting that the ball was in motion for ETH to break out of the short-term range in the coming weekend.
Still on the prospects of a bearish outcome, the market sentiment has been cooling down due to investor expectations of more economic disruption. However, it is worth noting that the wedge pattern squeeze zone could also limit ETH’s potential downside.
The possibility of an Ethereum price recovery towards $3,000 by the end of June was still high. Besides, with the likes of BlackRock regularly pumping liquidity into ETH, the investors remain optimistic.
News data source: kdj.com
The above is the detailed content of Will Ethereum Price Pick a Side Based on Exchange Reserves Pattern?. For more information, please follow other related articles on the PHP Chinese website!
Hot AI Tools
Undress AI Tool
Undress images for free
Undresser.AI Undress
AI-powered app for creating realistic nude photos
AI Clothes Remover
Online AI tool for removing clothes from photos.
Clothoff.io
AI clothes remover
Video Face Swap
Swap faces in any video effortlessly with our completely free AI face swap tool!
Hot Article
Hot Tools
Notepad++7.3.1
Easy-to-use and free code editor
SublimeText3 Chinese version
Chinese version, very easy to use
Zend Studio 13.0.1
Powerful PHP integrated development environment
Dreamweaver CS6
Visual web development tools
SublimeText3 Mac version
God-level code editing software (SublimeText3)
Hot Topics
How to withdraw coins on the ok exchange? Detailed tutorial on withdrawing coins on ok exchange
Jul 03, 2025 pm 02:03 PM
?In today's increasingly popular digital asset trading, it is particularly important to understand how to safely and effectively withdraw your digital assets. As a world-renowned digital asset trading platform, ok exchange provides convenient currency withdrawal services. This tutorial will analyze in detail the steps of withdrawing coins on the ok exchange, things to note, and some common questions and answers to help users complete asset transfer smoothly and ensure asset security. Whether you are using ok exchange for withdrawals for the first time or want to further understand the withdrawal process, this article will provide you with clear and practical guidance.
Bitcoin, Ethereum and Dogecoin: Browse the Ocean of Crypto
Jul 02, 2025 pm 10:39 PM
A potential breakthrough for Bitcoin eyes, Ethereum expands its ecosystem, and Dogecoin…well, it’s still Dogecoin. Let's dive into the latest cryptocurrency updates! The crypto world never stops! Bitcoin is testing new highs, Ethereum continues to build, and Dogecoin is still... Dogecoin. Let’s take a look at the latest progress in Bitcoin, Ethereum and Dogecoin to see what is changing in the digital currency field. Bitcoin: Horizontal fluctuations and high forecasts Bitcoin has performed relatively smoothly recently. Although it is in a bull cycle, the price is still consolidating sideways. Cryptocon pointed out that the market is currently in a slow rising stage and the rebound time is still short. But don't be discouraged! TedPillow believes Bitcoin will follow the S&P 500 index
What is Impossible Cloud Network (ICNT)? How? A comprehensive introduction to the ICN project that Binance will launch soon
Jul 07, 2025 pm 07:06 PM
Contents 1. What is ICN? 2. ICNT latest updates 3. Comparison and economic model between ICN and other DePIN projects and economic models 4. Conclusion of the next stage of the DePIN track At the end of May, ICN (ImpossibleCloudNetwork) @ICN_Protocol announced that it had received strategic investment in NGPCapital with a valuation of US$470 million. Many people's first reaction was: "Has Xiaomi invested in Web3?" Although this was not Lei Jun's direct move, the one who had bet on Xiaomi, Helium, and WorkFusion
The latest version of Digital Currency Exchange 2025 Bitcoin Exchange APP official website address
Jul 04, 2025 pm 01:30 PM
The latest version of Digital Currency Exchange 2025 is a world-leading digital asset trading application, committed to providing users with secure, stable and convenient trading services for mainstream digital currencies such as Bitcoin and Ethereum. Its simple and intuitive operation interface and powerful functional modules make it easy for both novices and senior traders to get started.
Bitcoin entrance app btc Bitcoin personal login portal
Jul 03, 2025 am 11:18 AM
The Bitcoin Portal App is the official application for personal login of Bitcoin. With this app, users can easily manage and use Bitcoin. This article will provide you with the official app download link, click the link to download and install.
Which is better, Dogecoin or Bitcoin_Comparison of the difference between Dogecoin and Bitcoin
Jul 04, 2025 pm 11:09 PM
Bitcoin is more suitable for long-term value investment and asset preservation, while Dogecoin is suitable for short-term trading and community-driven innovative applications. 1. Bitcoin was released by Satoshi Nakamoto in 2009, aiming to build a decentralized peer-to-peer digital payment system, which is known as "digital gold". Dogecoin was born in 2013 in the Internet meme culture. It was initially positioned as an interesting community currency, and then gradually became mainstream. 2. The total amount of Bitcoin is fixed at 21 million, and the output of new coins is reduced through the halving mechanism, which is scarce; Dogecoin adopts a continuous inflation model, with a fixed addition of about 5.2 billion coins each year, which is used to encourage miners to participate in and network maintenance. 3. The confirmation time of Bitcoin transactions is long, and the fees are significantly affected by network congestion; the Dogecoin block time is 1 minute, and the transaction speed is faster.
OEX official website entrance ios directly enter OEX platform official website Apple login portal
Jul 03, 2025 pm 02:06 PM
The OEX platform is a highly-watched digital asset trading platform, providing users with a safe, convenient and efficient trading experience. Here, you can conveniently buy, sell and trade various mainstream digital currencies such as Bitcoin and Ethereum, and enjoy the rich financial derivative services provided by the platform.
Dogecoin (DOGE) future price estimate: Market analysis from 2025 to 2030
Jul 03, 2025 pm 01:54 PM
Dogecoin (DOGE), a digital asset originating from the Internet subculture, has occupied a place in the crypto market with its unique community culture and wide popularity. For many market participants, predicting their price movements over a specific time period in the future is challenging but attractive. This article aims to deeply analyze the key factors that may affect Dogecoin’s market value from 2025 to 2030 and explore its potential development path.