Key takeaways
What is influencing the current ETH slowdown?
Partial profit-taking and selling pressure from Binance caused Ethereum to drop 4% that day.
Will ETH Price Reverse?
By taking liquidity between $3,600 and $3,800, Ethereum price could target the groups above $4,000, extending up to $4,800.
Ethereum [ETH] decreased by about 4% in the last 24 hours as some whales partially took profits. However, the altcoin was still trading around a key zone that could lead to a bounce towards bullish action.
These partial profits caused prices to fall.
Whale makes partial profits
According to data from OnChain Lens, a whale pocketed around $14.76 million in profits after selling 3,000 ETH on Binance. The whale had previously purchased 8,009 ETH for $18.25 million about two and a half months ago.
This trader, known as “ETH Millionaire,” still held around 2,002 tokens, indicating confidence in further price appreciation.
Source: Lens OnChain
Furthermore, Binance was exciting ETH and Bitcoin [BTC] from your hot wallet. On average, between $1.50 and $1.80 million worth of ETH was transferred to Wintermute.
The largest ETH position moved by Binance was worth $6.11 million, transferred to the Bitget deposit address.
However, analysis of liquidity and investor behavior indicated that selling pressure may change.
Impact of liquidity pools on Ethereum
On the charts, most of the ETH liquidity accumulated to the upside after most long positions below $3,800 were eliminated.
However, there was still liquidity between $3,600 and $3,800, which needed to be eliminated to initiate a reversal.
Liquidity just above $3,600 suggested that a move lower could occur first. This would scare away weak hands, a common practice before price rises.
Consequently, ETH price could rise towards levels above $3,900, with the highest level in this short-term outlook at $4,800.
Source: Ted Pillows/X
On the other hand, the dynamic nature of these liquidity pools could continue to form below $3,800. This would lead to the price extending its stay between the $3,600 and $3,800 price levels.
Fear and greed in balance
Meanwhile, Ethereum’s MVRV was at 1.5, suggesting that traders took profits as the price remained above the realized value of $2,560. ETH price has been consolidating between $2,560 and $5,760 levels.
As the price stagnates between these two levels, it represents a balance between fear and greed. This is the silence that precedes price surges, as ETH had been filled with this latest behavior when altcoin season was in play.
Source: CryptoQuant
Overall, Ethereum was still in a downtrend, and the decline was accelerated by recent partial profit-taking.
However, an upward price reversal could be triggered by liquidity pools above current price levels and continued accumulation.
