Ethereum (ETH) recently surged 10%, surpassing the critical $2,000 psychological level. However, market indicators and on-chain data suggest potential short-term volatility and selling pressure.
Technical Indicators Signal Potential Reversal
Ethereum’s technical indicators are presenting mixed signals. While the RSI indicates short-term strength, the OBV has not confirmed sustained buying activity. The price move beyond $2,000 could be a liquidity hunt, not a genuine trend reversal. Traders should watch key resistance and support levels to assess if ETH will continue climbing or face a potential reversal.
On-Chain Data Highlights Selling Pressure
Ethereum’s historical netflow patterns show that spikes in exchange inflows are often followed by price drops, signaling increased selling pressure. Over the past two months, high inflow days have frequently led to declines in ETH’s price. If this trend continues, Ethereum's current rally may be short-lived.
Derivatives Market Points to Bearish Sentiment
Ethereum's derivatives market reflects bearish sentiment. The taker buy/sell ratio has remained negative over the past three weeks, indicating that bearish sentiment prevails. Even with a temporary uptick in buy volume, the trend quickly shifts back towards selling pressure.
While Ethereum's recent push above $2,000 sparks optimism, prior trends and on-chain data advise caution. Incoming data suggests a potential short-term price correction ahead.
