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Ethereum Holds Above $3,150 Amid CVD Volatility and Buying Pressure
Ethereum is maintaining its position above $3,150 as the market shows signs of recovery. Analysts are divided on whether this is a temporary relief rally or the start of a longer-term rebound.
- The CryptoQuant report highlights increased volatility in Ethereum's Cumulative Volume Delta (CVD) on Binance, indicating fluctuations in buying and selling pressure.
- Recent spikes in CVD suggest renewed buying activity, though these are sporadic and insufficient for confirming a bullish reversal.
- Despite some positive shifts, Ethereum remains in a downtrend from its August peak.
CVD Volatility: Buyer-Seller Tug-of-War
- The Arab Chain report notes Ethereum's CVD turning positive, showing new liquidity entering via short-term buy orders.
- The ongoing battle between buyers and sellers is evident in sudden CVD spikes and pullbacks.
- A 30-day correlation between price and CVD holds steady at around 0.6, indicating persistent influence of liquidity flows on price direction.
- Investors are attempting to leverage volatility amid anticipation around potential network upgrades, but sustained accumulation is needed for upward movement.
Ethereum Faces Key Resistance
- ETH is cautiously recovering above $3,150 but faces resistance after declining from October highs near $4,500.
- Support was found slightly above $2,700, with increased buying volume suggesting renewed interest.
- The price is testing the 100-day SMA, which has turned into resistance; reclaiming it could restore bullish momentum.
- Further resistance lies at the 50-day SMA, reflecting continued medium-term selling pressure.
- Volume inconsistency indicates hesitation, requiring stronger buying to challenge the $3,300–$3,350 resistance zone.
