A recent analysis by CryptoQuant has highlighted important trends in the Ethereum market, including price support and risks for investors.
Support for Ethereum Price Growth
CryptoQuant noted that the active price increase of Ethereum (ETH) is supported by significant inflows to the Binance exchange. According to the company, this situation may indicate potential selling pressure or the use of ETH as collateral for margin trading. Despite ETH reaching an all-time high (ATH), the question remains whether prices can be sustained at this level.
Speculative Activity and Volatility
Data on ETH open interest on Binance shows record levels, indicating intense speculative activity among investors and increasing market volatility. It is warned that Ethereum could be subject to sudden price fluctuations and frequent long-short traps.
Market Uncertainty and Recommendations
CryptoQuant also emphasized that funding rates remain neutral, creating an uncertain picture. While speculative volumes are peaking, neutral funding means that even small price fluctuations can lead to large long or short liquidations. Given these points, inflow data should be closely monitored, as continued inflows could lead to a pause for ETH and trigger a new correction wave.
The CryptoQuant analysis highlights current trends in the Ethereum market, pointing to both positive and negative factors that may influence price dynamics in the short term.
