The key onchain ETH indicator rose to its highest level in over three years, a level last seen when ETH bottomed during the 2022 bear market cycle.
The signal confirms an early bottom, despite faint spot demand and subdued price action. The data suggests that ETH may stabilize near a local low around $2,000, but a downside jump is still possible in the coming weeks.
Ether Flow Spikes: Does This Confirm ETH Bottom?
30-day average of positive Ether net recipient volume he climbed up to $142 million on March 17, reaching levels last seen on July 18, 2022. Net buyer volume measures the difference between aggressive buyers and sellers in derivatives markets.
A positive reading signals that market orders are leaning towards buyers. The recent raise is in line with previous spikes seen in mid-2022 during the correction phase.
These expansions have occurred during transitional periods where investors reposition and raise exposure while the price stabilizes near market lows, as observed in July 2022 and August 2020.
Coinbase’s Ethereum Premium Index has also been positive since February 24, with elevated premium levels indicating growing spot market demand from US traders.
However, cryptocurrency analyst Pelin Ay excellent that despite the decline in supply pressures, the price response remained relatively faint, probably due to the lack of dominant buying demand. The analyst said
“The supply side is bullish, but there are no buyers. It looks like buyers still think the current price is high and are waiting for a new bottom.”
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What happens if Ether falls below $2,150?
Ether’s near-term support lines up with the 100- and 200-period exponential moving averages (EMAs), but the price is falling near the rising trendline, with a potential breakdown focusing on lower liquidity zones.
Internal liquidity is in the range of $2,100 to $2,000, with a more pronounced cluster forming near $1,905.
Larger liquidation group is USD 1,976, with open long positions worth over USD 3 billion. Entering this zone may result in forced liquidations and create a short-term imbalance.
If buyers step in, this area could also act as a demand zone and support a price rebound above $2,000.
Cryptocurrency trader EliZ scratched a clear threshold of $2,000 on the daily time frame. Staying above this level maintains the medium-term trend. The break below shifts positioning towards an aggressive compact exposure, with lower targets taking center stage.
Related: Crypto Fear and Greed Rebound from Extreme Lows as Investors Reenter the Market
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