Ethereum [$ETH] had a solidly bullish August. The monthly low and high were at $1,820 and $2,567, respectively, a 41% rally. The steady gains were accompanied by a streak of positive flows into Spot Ethereum ETFS.
Since the 12th of August, Farside Investors’ data showed a net flow of $1.736 billion into spot ETFs. Except for the 2nd of September, every trading day has seen inflows.
Yet, the bullish Ethereum momentum has stalled in recent weeks. The 4-hour chart above highlights a range formation (purple) between $2,380 and $2,530.
Moreover, the swing high at $2,466 from April, which marked a lower high in the long-term downtrend from last October, is within this range.
In other words, there is a chance that $ETH is facing distribution at a key swing level. The 4-hour timeframe’s volume indicators don’t show steady selling, but there is some doubt among investors.
Resolving the short-term Ethereum range
The 3-month taker CVD measured an increase in aggressive buying volume in August. Currently, the Spot taker CVD reflects taker-buy-dominant conditions, which indicates notable buying pressure.
The derivatives markets also saw an uptick in buying pressure. The taker buy/sell ratio climbed to 1.11. Readings above 1 reflect that aggressive (taker) buy orders outweighed sellers and signal buyer dominance.
If the ratio remains above 1 in the coming days, it will reflect elevated, sustained buy pressure. This could help drive Ethereum prices beyond the pivotal $2.5k resistance area.
Evidence signals an “imminent bullish breakout”
In recent days, the $ETH reserve on exchanges has been declining. Popular crypto analyst Ali Martinez pointed out in a post on X that 116,000 $ETH, worth around $300 million, has been withdrawn from exchanges in the past two days.
Aggressive accumulation and Spot and derivatives taker buyer dominance pointed toward firm bullishness in the market.
It seemed to be only a matter of time before the $2,530 range high was broken. In that scenario, the next long-term resistance to watch out for would be the $2,900-$3,000 supply zone.
Meanwhile, a breakdown below $2,380 would be the first notable signal that things were starting to go against the $ETH bulls.
Final Summary
- Ethereum has formed a range around the $2.5k resistance, right by the $2,466 high from April, a key level in the long-term downtrend.
- In the short-term, heavy Spot and derivatives demand suggested buyers had the upper hand, and a bullish $ETH breakout was likely.
