OnChain Data Says Ether May Go Down: Will Traders Buy?
The key Ether (ETH) onchain indicator rose to its highest level in three years, a level seen at the end of ETH's 2022 bear market cycle.
The signal supports an early bearish trend despite weak spot demand and muted price action. The data suggests that ETH may stabilize near the local floor around $2,000, but sweeping lower price levels will be possible in the coming weeks.
Ether Driving Flows: Does This Confirm ETH's Bottom?
The 30-day average of Ether net receivables rose to $142 million on March 17, reaching the level seen at the end of July 18, 2022. Net leverage measures the difference between buyers and sellers in the derivatives markets.
Positive reading signals that market orders are biased towards buyers. The recent increase is consistent with previous spikes seen in the mid-2022 correction phase.
These spreads are seen during transition periods when traders shift and increase exposure when prices stabilize below the market, as seen in July 2022 and August 2020.
The Ethereum Coinbase Premium Index has also been positive since February 24, and higher premium levels indicate growing demand for space from US-based traders.
However, crypto analyst Pelin Ai noted that despite supply-side pressure easing, the price response remained relatively muted. The analyst said.
“The supply side is high, but there are no buyers. It seems that buyers are still holding prices high and waiting for a new bottom.”
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What happens if Ether falls below $2,150?
Ether's short-term support is associated with the 100 and 200-time exponential moving averages (EMAs), but the price is squeezing in an uptrend, with a breakdown focusing on low liquidity zones.
The internal liquidation is set between $2,100 and $2,000 and a more pronounced set has formed around $1,905.
A large liquidity cluster settled at $1,976, with more than $3 billion of long positions open. Entry into this zone can trigger forced outflows and create short-term imbalances.
If buyers move in, this area could serve as a zone of interest and support a price improvement of over $2,000.
Crypto trader Elizy has revealed a clear limit on the daily timeframe of $2,000. Staying above this level will keep the medium-term trend intact. A lower aperture changes the setting to a harsher short exposure, focusing on lower targets.
RELATED: Crypto fear and greed rebound from high lows as traders re-enter
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