Ethereum’s [ETH] 11% rebound – Is greed fueling a bottom or is fear driving a trap?
The post Ethereum’s [ETH] 11% rebound – Is greed fueling a bottom or is fear driving a trap? appeared on BitcoinEthereumNews.com.
ETH’ 11% rebound from its recent multi-year low has been underpinned by significant accumulation As the price dips and risks a hike, the question is clear – Are you in, or are you out? At the time of writing, on-chain data hinted at significant Ethereum [ETH] accumulation. Specifically, 380k ETH was acquired at the $1,461-level and an additional 453k ETH has been absorbed over the past five days. Taken together, this concentrated bid zone may signal the formation of a potential market bottom. However, it’s crucial to discern the nature of this liquidity influx. If the capital is predominantly entering through spot markets, it may signal genuine buying interest, potentially marking a strong entry point for investors. Conversely, if positioning is leverage-heavy, the market would be vulnerable to downside volatility. Especially in a risk-off environment where overleveraging can lead to rapid price corrections. At press time, ETH was trading at $1,567, marking an 11% rebound from its recent local low of $1,412 five days ago. In a market swinging between low prices and high risk, is the current setup a trap or a golden opportunity? Greed or Fear – Decoding the current buying frenzy It’s been two years since the altcoin last traded at $1.3k. Clearly, this dip is unlike any it has experienced in recent cycles. The subsequent buying frenzy was logical, reflecting the greed side of the market. However, AMBCrypto’s recent analysis revealed that dormant whale wallets are beginning to realize losses, with notable capital rotation. This reflected fear-based flows. For ETH to breach key resistance levels, market psychology must decisively tilt towards greed. In fact, Glassnode’s data supported this pivot. The $1,461 zone has emerged as a potential support base, backed by 380k ETH in active accumulation. Meanwhile, Ethereum has remained range-bound between the $1,548 and $1,599…
Filed under: News - @ April 12, 2025 9:22 am