The move back above $2,700 comes after ETH experienced a sharp correction of nearly 12% over the past two weeks, dropping from local highs near $3,050. This rebound is now being closely monitored as a possible confirmation of demand strength rather than a temporary dead-cat bounce.
Why the $2,700 Level Matters for Ethereum
The $2,700 price zone has historically acted as both resistance and support during previous market cycles. On a technical basis, this level aligns with:
The 200-day exponential moving average
A high-volume node from prior consolidation ranges
A psychological round number favored by large buyers
Data from centralized exchanges shows spot buying volume increased by approximately 18% as ETH approached $2,680, suggesting dip buyers stepped in aggressively. At the same time, sell pressure weakened, indicating that bears struggled to push prices lower.
Liquidation Data Signals Market Reset
One of the most notable analytical drivers behind ETH’s recovery is the recent derivatives market reset. Over the last 48 hours:
$410 million in ETH futures positions were liquidated
Long liquidations accounted for nearly 65% of total wipes
Open interest declined by 9.3%, reducing leverage risk
This flush-out of overleveraged positions has helped cool volatility and allowed price discovery to normalize. Historically, similar liquidation events have preceded short-term trend reversals or extended consolidation phases.
On-Chain Metrics Show Stabilization
On-chain analytics paint a mixed but improving picture. Active Ethereum addresses rose by 6.7% week-over-week, while large wallet accumulation (addresses holding over 10,000 ETH) increased by 1.4%, suggesting strategic accumulation rather than panic selling.
Additionally, exchange reserves continue to trend lower. ETH balances on centralized exchanges dropped by 2.1% this month, often interpreted as a bullish signal indicating reduced immediate selling intent.
Institutional and Macro Market Influence
Ethereum’s price action is also being shaped by broader macroeconomic forces. U.S. investors remain cautious amid ongoing interest-rate uncertainty, yet digital asset inflows show resilience. Ethereum-linked investment products recorded $92 million in net inflows over the past 10 days, reinforcing confidence in ETH as a long-term asset.
Correlations between ETH and tech equities have slightly weakened, dropping from 0.78 to 0.64, suggesting Ethereum is beginning to trade more on crypto-native fundamentals rather than macro risk alone.
Key Resistance and Price Targets Ahead
From an analytical standpoint, traders are now watching several critical levels:
$2,820- short-term resistance and breakout trigger
$2,900-$3,000 - high-liquidity zone and trend confirmation area
$2,620 - downside support if momentum weakens
If ETH maintains daily closes above $2,700 with increasing volume, analysts project a 7-11% upside move over the next two weeks. Failure to hold this level, however, could result in renewed consolidation between $2,500 and $2,700.
0 Comments