- Ethereum Futures surged 40% in volume as traders positioned themselves for possible price movements.
- Investor profit-taking is limiting a major rally in ETH, despite increased outflows from exchanges.
Ethereum (ETH) the price is experiencing a period of volatility, with fluctuating highs and lows in recent weeks.
After briefly falling below $2,600, Ethereum price showed signs of recovery, trading at $2,645.52 at the time of going to press.
Over the past 24 hours, the price has increased by 0.29%, while the past week has seen a slight decline of 0.12%. Ethereum’s market capitalization was $318.46 billion, with a 24-hour trading volume of over $17.88 billion.
Key technical levels to watch
Ethereum price is near a critical support level at $2,181.30. This level has been reinforced by an ascending trendline that has supported the crypto since mid-2022.
If Ethereum were to fall below this support, the market could see a downtrend, which could lead to further price declines.
On the other hand, Ethereum faces resistance around $2,926. A break above this resistance could send the price higher, with a potential target of $3,540.
If the buying momentum strengthens, the price could even test previous highs around $4,000.
For bullish investors, the uptrend line will play a crucial role in maintaining market confidence.
Source: TradingView
Ethereum Futures Jump Amid Volatility
The MACD indicator for Ethereum showed bearish sentiment, with both the MACD line and the signal line below zero.
However, if the MACD histogram begins to show positive movement, it could signal a reversal, supporting a more bullish scenario for Ethereum in the coming weeks.
Recent Futures Data from Coinglass revealed increased activity in the Ethereum market. Open interest for ETH futures increased by 2.94%, now standing at $12.66 billion, indicating growing interest from traders.
Source: Coinglass
Additionally, ETH futures volume jumped 40.39% to $25.63 billion, while options volume jumped 258.39% to $564.17 million.
These increases reflect growing participation in Ethereum Futures trading, suggesting that market participants are positioning themselves for possible price movements.
Profit taking, not accumulation
A review by AMBCrypto note that since late July, Ethereum outflows from centralized exchanges have increased, suggesting accumulation by some investors.
However, this accumulation has not been as intense as in February or November 2023. Over the past two weeks, net flows have shown several positive days, indicating that some holders have taken profits.
While the volume of these outflows is not large enough to suggest an exodus, it does highlight that a portion of the market is choosing to take advantage of recent price increases.
Read Ethereum (ETH) Price Forecast 2024-2025
Net flow data suggests that while there is some accumulation, it may not be enough to cause a major bull rally for Ethereum in the short term.
Instead, profit-taking appears to be the dominant behavior as some holders capitalize on Ethereum’s performance since March 2024.
