Ethereum is holding firmly above the $3,150 level as the market enters a more bullish phase after enduring weeks of heavy selling pressure and fear-driven liquidation. The recovery has sparked debate among analysts: some view the rebound as nothing more than a relief bounce within a broader downtrend, while others believe Ethereum could lay the foundation for a more sustained rebound.
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A new CryptoQuant report offers one of the clearest insights yet. According to Ethereum data on Binance, recent weeks have shown increased volatility in cumulative volume delta (CVD) – a metric that tracks buying and selling pressure in real time. This volatility reflects abrupt and rapid changes in trader behavior as the market attempts to stabilize.
Although Ethereum remains in a downtrend from its August peak, recent CVD spikes indicate the return of notable buying activity. However, the report highlights that these demand surges are sporadic and do not have the lasting strength needed to confirm a full bullish reversal.
CVD Volatility Highlights Ongoing Battle Between Buyers and Sellers
According to the Arabic Channel report, Ethereum’s CVD recently turned positive, coinciding with the price’s attempt to stabilize above the $3,100 level. This change indicates that new liquidity is entering the market via short-term buy orders, suggesting that some traders are stepping in to accumulate during dips.
However, CVD’s sudden spikes and rapid pullbacks reveal that the market remains locked in a strong tug-of-war between buyers and sellers. This volatility highlights the fact that Ethereum has yet to achieve either temporal stability or a clear structural trend.
The report also highlights the importance of the 30-day correlation between price and CVD, which has remained stable at around 0.6 despite the price decline. This relatively high figure shows that liquidity flows continue to influence Ethereum’s price direction significantly and consistently. Even though buying pressure appears erratic, its recurring impact on prices suggests that traders are still actively reacting to market conditions.
Overall, this trend reflects investors’ attempt to take advantage of volatility, especially as expectations grow around potential liquidity inflows related to upcoming network upgrades. Still, Arab Chain points out that without a more sustained accumulation phase and a reduction in short-term selling, Ethereum may struggle to generate a decisive upward move.
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Ethereum attempts recovery but faces key resistance
Ethereum’s latest price action shows a cautious recovery as ETH climbs back above the $3,150 level, but the chart reveals that the broader structure remains fragile. After a sharp decline from October highs near $4,500, ETH found support slightly above $2,700, where buyers returned with increased volume, visible in the recent surge of green candles at the bottom of the chart. This reaction suggests renewed interest at lower levels, but not yet a decisive trend change.
Price is now pressing against the 100-day SMA (red line), a level that previously served as support and has now turned into resistance. Reclaiming this line would be an important step toward restoring bullish momentum. Above, ETH faces another barrier at the 50-day SMA (blue line), which continues to decline, reflecting continued medium-term selling pressure.
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Despite the rebound, volume remains inconsistent, reflecting hesitation on the part of market participants. ETH will need subsequent larger purchases to challenge the next resistance zone around $3,300 to $3,350, a region aligned with previous breakout levels.
Featured image from ChatGPT, chart from TradingView.com
