Ethereum (ETH) continues to experience pressure at the $2,500 level. While no major correction has occurred yet, there are signs in the crypto market of potential selling that could lead to price declines.
High Inflows of ETH on Binance
Ethereum reserves on Binance have risen to 4.9 million ETH, the highest level since May 2023. This increase may indicate that large holders are moving their coins to exchanges with the intention to sell. Notably, previous similar patterns often preceded price drops.
Profit Signals in SOPR
The Spent Output Profit Ratio (SOPR) sits at around 1.05, indicating that most ETH being sold was purchased earlier at a lower price. This may lead to sellers cashing out their profits. Historically, when SOPR fluctuated between 1.05 and 1.15, ETH prices often faced pullbacks. If SOPR continues to rise while ETH remains below $2,600, a correction toward $2,300 becomes likely.
Current Price and Its Implications
Currently, ETH is trading within a pennant pattern, with support around $2,440 and resistance just above $2,520. Patterns where prices are constrained by two trend lines often lead to high volatility. Should ETH fall below support, the first downside target would be $2,350. Conversely, reclaiming the $2,600 resistance is necessary for a potential push toward $2,750.
Ethereum (ETH) faces significant pressure at the $2,500 level, highlighted by high inflows to exchanges and SOPR metrics. Continued trends may lead to a price correction.
