Ethereum Rebounds 11% Amid Mixed Market Signals
Key Takeaways
- Ethereum (ETH) saw an 11% increase over five days – rising from $1,412 to $1,567.
- Approximately 833,000 ETH were accumulated during this period – a potential sign of bottom formation.
- On-chain data, however, reveals conflicting signals between spot purchases and leveraged positions.
- Large wallets (whales) are reducing their holdings – a warning sign for short-term pullbacks.
- The market fluctuates between greed and fear – a clear direction is currently lacking.
Strong Accumulation – Real Bottom or Short-Term Speculation?
Ethereum has recovered significantly in recent days. The price increased by 11% to $1,567 after previously falling to a multi-year low of $1,412. According to on-chain data, around 380,000 ETH were purchased at the $1,461 price level alone. An additional 453,000 ETH were added over the following five days.
This concentration of buying could indicate the formation of a market bottom. However, the key question is whether these purchases are happening on the spot market – representing genuine demand – or whether they are based on leveraged positions. The latter would increase risk, as rapid liquidations could occur if prices fall.
Greed vs. Fear – What’s Driving the Market?
Current market behaviour reflects a mix of greed and fear. On one hand, there are strong purchases at lower levels – a typical sign of greed. On the other hand, long-dormant wallets (so-called “whale wallets”) are realizing losses, which indicates fear and uncertainty.
Glassnode data shows that Ethereum is currently trading between two resistance zones: $1,548 and $1,599. These zones hold approximately 794,000 and 732,000 ETH, respectively. They could serve as short-term barriers if demand doesn’t continue to grow.
Derivatives Sector Dominates – A Warning Sign?
Over the past week, around 100,000 ETH flowed into spot exchanges – an indication of selling pressure. At the same time, the derivatives market saw an outflow of 60,000 ETH, pointing to increased demand for leveraged positions. Funding rates (fees for long and short positions) remained positive, signalling a bullish sentiment in futures markets.
The issue: if spot demand doesn’t keep up, the rally could quickly reverse. In such a scenario, chain reactions from liquidations may occur – especially if short-term buyers decide to take profits.
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Whale Activity Raises Caution
Another reason for caution: the number of wallets holding more than 10,000 ETH has dropped to 875 – an eight-year low. Just last month, the number was over 1,000. This development coincided with the local high of $2,600 on February 21 and suggests a phase of distribution.
The decline in large wallets indicates that experienced market participants are reducing their holdings. This weakens confidence in a sustained recovery and increases the likelihood of another drop below the $1,400 mark.
Our Assessment
The current market situation for Ethereum is mixed. On one hand, there is strong accumulation at lower levels, which could indicate potential bottom formation. On the other hand, leveraged positions dominate and large wallets are pulling back – clear warning signs.
What this means for you as an investor: caution is advised. Without confirmation from rising spot demand or institutional buying, the risk remains high that this is a so-called “bull trap” – a false recovery that leads to another decline.
Monitor the development of resistance zones and watch for changes in whale activity and spot inflows. Only when these factors turn positive could a sustainable upward trend begin. Until then, restraint is recommended.
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
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| Cons |
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| Further practical applications | |
| Price | $1,641.83 |
| 24h % | 4.61 % |
| 7d % | -7.89 % |
| 30d % | -12.35 % |
| 60d % | -38.25 % |
| 1y % | -52.29 % |
| Market Cap | $198,356,906,777.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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