Do traders buy the dip?
ETH sold off at the weekly open, but the network's volume gauge turned positive for the first time in many years. Will the bulls notice the signal and try to push the price of Ether higher?
Ether (ETH) derivatives data is starting to highlight a structural change. After nearly three years of sell-side dominance, ETH's net receiving volume has turned positive, perhaps indicating renewed interest from futures traders.
Main Receptors:
As of January 6th, ETH net receivables reached $390 million, the largest buying imbalance since January 2023.
Starting in 2023, the positive rate is consistent with the continuation of regional bottoms and upswings.
Despite the negative CVD, ETH holds above the $3,000 support level, indicating traction by larger players.
ETH net taker volume highlights a rare trend reversal
Ethernet's net receivables volume has recorded a positive balance of $390 million since January 6, indicating a strong buying dominance since January 2023. The gauge shows whether traders are buying at market prices or selling at auctions. A positive reading indicates long-term confidence among traders.
Historically, strong positive changes in net receivership rates since 2020 have been consistent with downward trends or primary improvements rather than local highs. Sustained positivity often reflects participants' willingness to continue prior to the emergence of a broader trend.
This shift follows years of sell-side pressure, indicating a shift in future demand rather than a short-term squeeze. In previous cycles, similar transitions preceded several weeks of trend expansion.
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ETH chases the underlying liquidity
Data from CryptoQuant shows that as ETH traded around $3,000, Cumulative Volume Delta (CVD) remained negative at -3,676 ETH on Monday, indicating short-term selling pressure. Despite this, the 30-day correlation between price and CVD is around 0.62, which is partially supported by the still-liquidity of price action.
This divergence indicates a correction phase, and short-term traders seem to be taking profits. The data shows that as large participants gradually position themselves, ETH remains stable above $3,000.
From a technical perspective, ETH returned to its five-month control point from $3,050 to $3,140 last week, according to Cointelegraph's forecast. As long as daily closes hold above $3,000, the broad uptrend remains intact. A break below that level indicates a structural change.
Hyblock data shows about $540 million in net long positions at nearly $3,100, while another $500 million in liquidity clusters below $3,000. This position suggests that the price of ETH may continue to fluctuate within this range as the liquidity balance decreases.
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