Ethereum remains firmly above the $3,150 level as the market shifts into a more bullish phase after weeks of massive selling pressure and fear-driven liquidation. The recovery has sparked debate among analysts: some see the rebound as nothing more than a bounce within a broader downtrend, while others believe Ethereum could be building the foundations for a more sustained rebound.
A up-to-date report from CryptoQuant offers one of the clearest insights yet. According to Ethereum data on Binance, the last few weeks have shown increased volatility in cumulative volume delta (CVD) – an indicator that tracks buying and selling pressure in real time. This volatility reflects acute and rapid changes in investor behavior as the market tries to stabilize.
While Ethereum remains on a downtrend from its August peak, recent CVD spikes indicate a return of noticeable purchasing activity. However, the report emphasizes that these demand bursts are sporadic and lack the sustained strength needed to confirm a full bullish reversal.
CVD volatility highlights the ongoing battle between buyers and sellers
By Arab Chain reportEthereum’s CVD recently turned positive, coinciding with the price attempting to stabilize above the $3,100 level. This change indicates that up-to-date liquidity is entering the market through short-term buy orders, suggesting that some investors are stepping in to accumulate during declines.
However, the sudden spikes and acute declines in CVD show that the market remains embroiled in intense competition between buyers and sellers. This volatility highlights the fact that Ethereum has yet to achieve either fleeting stability or a clear structural trend.
The report also highlights the importance of the 30-day correlation between price and CVD, which remains stable at around 0.6 despite lower price levels. This relatively high reading shows that liquidity flows continue to influence Ethereum’s price direction in a significant and consistent manner. Although buying pressure appears erratic, its recurring impact on price suggests that investors are still actively responding to market conditions.
Broadly speaking, this pattern reflects investors trying to take advantage of volatility, especially amid rising expectations for potential liquidity inflows related to upcoming grid upgrades. However, Arab Chain emphasizes that without a more sustained accumulation phase and narrow short-term selling, Ethereum may struggle to generate a decisive upward move.
Ethereum is trying to recover but is facing key resistance
Ethereum’s recent price action shows cautious recovery as ETH climbs back above the $3,150 level, but the chart shows that the broader structure remains volatile. After falling sharply from October highs near $4,500, ETH found support just above $2,700, where buyers returned with increased volume – evident by the recent burst of green candles at the bottom of the chart. This reaction suggests renewed interest in lower levels, but it does not yet mean a decisive change in the trend.
The price is currently pushing against the 100-day SMA (red line), a level that previously acted as support and has now turned into resistance. Reclaiming this line would be an crucial step towards restoring bullish momentum. Above, ETH faces another barrier in the form of the 50-day SMA (blue line), which continues to decline, reflecting continued medium-term selling pressure.
Despite the rebound, volume remains unchanged, indicating hesitancy among market participants. ETH will need stronger follow-up buying to challenge the next resistance zone around $3,300-$3,350, a region consistent with previous breakdown levels.
Featured image from ChatGPT, chart from TradingView.com
