- Ethereum faces growing sell pressure as exchange reserves rise and netflows stay negative.
- Strong liquidation resistance between $2,700 and $2,830 continues to cap bullish momentum.
Ethereum [ETH] continues to trade in a narrow range, currently hovering around $2,623, but beneath the surface, on-chain data signals a growing storm. Despite appearing stable, ETH faces three glaring hurdles that could keep bulls in check—and potentially push the asset lower if momentum doesn’t shift soon.
1. Exchange Reserves Spike on Binance
One of the strongest red flags comes from Ethereum’s exchange reserves on Binance, which recently surged to levels not seen since prior sell-offs. This influx of ETH to the exchange typically signals growing sell-side pressure. Historically, such moves precede increased volatility or price corrections, as traders prepare to offload assets during short-lived rallies.
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2. Persistent Negative Netflows Hide Bearish Implications
While ETH netflows remain negative—recording -248.83K ETH over the past seven days and -60.9K ETH over the past month—this doesn’t tell the full story. Negative netflows often signal accumulation, but given Ethereum’s stagnant price action, they more likely reflect withdrawals after prior selling. With just -4K ETH flowing out in the last 24 hours, it’s clear that capital is leaving the market gradually, without being replaced by fresh inflows or investor optimism.
3. Liquidation Walls and Dropping Open Interest
Perhaps the most immediate threat to a bullish breakout lies in Ethereum’s liquidation heatmap. A thick wall of sell pressure exists between $2,700 and $2,830, acting as a formidable resistance zone. These liquidation clusters have repeatedly triggered reversals, halting ETH’s upward momentum. Additionally, Open Interest fell nearly 9% in 24 hours to $18.14 billion, signaling that traders are backing off, likely waiting for a clearer direction.
Ethereum’s chart may appear calm, but on-chain metrics paint a more cautious picture. With increasing exchange reserves, subdued inflows, and strong liquidation resistance, bulls face an uphill battle. Unless ETH can break through the $2,700 level with conviction and volume, the threat of a dip toward $2,480 remains firmly in play. For now, traders should brace for continued consolidation—and remain alert to any signs of renewed momentum.
