Why is Ethereum Stuck Below $2,500?

Ethereum has continued upward since rebounding on Sunday. However, it faces rejection at a crucial level and approaches the make-or-break point.

The largest altcoin retested the $2,500 mark a few hours ago. It registered notable success, peaking at $2,520. However, it retraced as selling congestion increased. ETH struggles to keep prices above $2,400 since the latest shift in trajectory. 

Data from CryptoQuant sheds more light on the reason for the latest change. The platform noted that the asset saw an increase in exchange inflows after attaining the highlighted mark. Investors moved over 931,000 ETH in the last 24 hours, with the bulk of the transactions occurring a few hours ago. This figure outweighed the 833k outflow they recorded. The trend led to an increase in exchange reserves.

Data from Coinglass indicates a similar trend in the derivatives market. The ETH/USD orderbook on the platform shows that there are massive sell orders between $2,500 and $2,530. Such an increase in orders around this mark was likely a contributing factor to the coin’s failure to sustain momentum.

Both platforms reveal the bearish presence. Further data indicate that the coin may be receiving less attention or liquidity inflow as trading volume has slightly declined.

The 1-day chart shows that the asset may be losing momentum following previous increases. The latest trend may be a sign of exhaustion from the bulls. 

Ethereum experienced little volatility over the last two days due to a lack of bullish momentum. There is no trigger for further increases as tensions in the Middle East ease. The crypto space is becoming increasingly quiet. 

Nonetheless, ETH investors remain positive that the trend will change. 

Ethereum Sees Smart Money Inflow

Evan Luthra posted on X what he believes is the greenest sign for Ethereum. He presented a chart that depicts the Accumulator Addresses Inflow. The chart recently had a spike, indicating that the asset is seeing a massive liquidity inflow.

The user said, “THE WHALES ARE HEAVILY BUYING $ETH!.” Others agreed with this assertion, with one commenter saying: “Whales never buy for no reason; smart money knows the game.”

Other metrics support this growing optimism. A report from Santiment noted that traders are pushing Bitcoin and Ethereum in different directions. BTC is more “shorting action” as traders anticipate a slight pullback. At the same time, ETH sees more “longing action” in hopes of further price increases. 

Data from DeFiLlama suggest that investors are ditching their risk-off strategies. The platform reveals that the project is experiencing a decline in the total value locked. Less staking may mean funds diversion to other risky ventures.

Fundamentals indicate that the altcoin may see further increases in the coming days. Coinbase announced on Thursday its intention to launch US perpetual-style Futures on its derivative platform. Its latest move marks the first attempt at replicating offshore perpetual contracts.

The United States may be responsible for a significant portion of the buying activity in the days leading up to July 21, when the rollout begins. 

Nonetheless, the chart reveals that Ethereum has tested a key level three times in the last three days. The frequency of the test on the $2,380 support indicates growing negative sentiment among traders. The asset may retrace to the 50% fib level before rebounding. Previous price movements suggest that they may retest $2,500 after rebounding.

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