Ethereum (ETH) price records $234 million in liquidity as price recovers from $4,000

TLDR

Ethereum tested the $4,000 resistance level before making a significant retracement to $3,621, indicating increased retail selling pressure as ETH trading prices rose from $60B to $72B despite the decline, suggesting active selling has reached the overall crypto market liquidity. $1.58B, at $234.72M Institutional ETF Demand in ETH Account Volume Continues Strong, Help Offset Retail Selling Pressure

Ethereum (ETH) has bounced back from the $4,000 resistance level, currently trading at $3,621, a 6% drop in the last 24 hours. The pullback comes as retail traders on Binance show increased selling pressure, while institutional demand through ETF products remains strong.

Data from cryptocurrency exchanges show that Ethereum's market capitalization has fallen sharply, falling more than $40 billion from its recent peak. Total market capitalization fell to $434 billion from $490 billion last Friday, underscoring the extent of the current correction.

Despite the price reduction, the daily trading of Ethereum showed the opposite trend. The amount increased from $60 billion to $72 billion on December 6, indicating active market participation at its lowest point. Market analysts attribute this increase mainly to sales activity.

CryptoQuant analyst Darkfost reports that Binance's taker buy-sell for Ethereum has turned negative as the price nears $4,000. This measure indicates that traders on the platform have taken a sell position, especially since the beginning of November.

The market has seen significant liquidity in the cryptocurrency space. According to Coinglass data, 526,828 traders were released in the last 24 hours, with a total outflow of $1.58 billion. Ethereum-based liquidity accounted for $234.72 million of this total.

Breaking down ETH liquidity further, long positions accounted for the majority of $208.83 million, while short positions recorded losses of $25.89 million. These figures highlight the current directional bias of the market and the risks faced by leveraged traders.

Trading on Binance, one of the largest cryptocurrency exchanges, shows that retail traders have maintained their bearish positions amid recent price action. This selling pressure has created persistent resistance at the $4,000 price level.

However, institutional demand tells a different story. Demand for Ethereum exchange-traded funds (ETFs) continues to balance retail selling pressure as it continues to show strength. This institutional support has helped maintain the level of support during the current correction.

The contrast between retail and institutional behavior reveals differences in market sentiment across different categories of traders. While small traders appear to be making gains, large institutional players continue to accumulate space through integrated investment products.

Technical indicators indicate that the current price action is testing key support levels. A move below $4,000 added to the selling pressure, although some market participants saw this as a healthy correction from the broader upside.

According to market data, selling pressure intensified after Ethereum failed to maintain momentum above the $3,900 level. This technical resistance point has become a focal point for traders to track price action.

The cryptocurrency's price movement has elicited mixed reactions from market participants. While some traders have closed positions, others see the current level as a potential entry point, especially on continued institutional demand.

Looking at the order book data, significant support has formed at the $3,500 level, while resistance is centered around the recent highs around $4,000. These price points have become key areas for market participants.

Recent data shows that the ebb and flow of the exchange has remained relatively balanced, suggesting that despite the price adjustment, there hasn't been much outflow of ETH from trading platforms.

The market recorded a daily trading volume of more than 72 billion dollars, indicating the active participation of both buyers and sellers. This high trading activity indicates high market participation during the current price movement.