After hitting a monthly high of $2,209 on Friday, the price of Ether (ETH) has broken below key monthly resistance tested five times since February.
While onchain data highlights a large cluster of investors near $2,800, Ether futures market data shows that traders are reducing positions after this week’s rally.
Investors will see a major rally zone based on the $2,800 level
Data from Glassnode showed that the heat map of the distribution of ETH based on costs shows a heavy accumulation near $2,800, where more than 3 million ETH were previously bought.
Cost base clusters identify price areas where large groups of investors have established positions, often acting as magnets during upward moves when investors defend or influence entry levels.
The data suggests a possible path to $2,800. It is worth noting that there is a relatively limited historical concentration of supply between the $2,200 and $2,800 cost base cluster, which means a break from the current range could allow the price to move more freely into this range.
From a technical perspective, the 200-day simple moving average (SMA) is also intersected on the daily chart near the $2,800 level, a key indicator ETH has not approached since early January.
However, derivative data suggests that traders are cautious near the current price range.
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Ether futures activity fades after testing $2,200
Ether futures market activity extended this week’s rally, with open interest increasing 21% to $10.9 billion from $9 billion this week as the price climbed to $2,200. The increase suggests that traders are opening new leveraged positions as Ether has risen.
However, when ETH tested the upper range, the position changed. Open interest declined by about 6% after testing $2,200, indicating that some traders closed positions rather than adding new exposure.
The reversal suggests that long-term traders may have taken profits or reduced their risk near the upper boundary of the range, slowing the rally.
Spot market activity showed improvement in demand during the move. Cumulative Volume Delta (CVD), which tracks aggressive buying and selling, rose sharply from -$150 million on March 8th to $87 million, indicating that buyers stepped in as they pulled back from the $2,000 Ether area.
However, data on order flow reflects bearish sentiment. The bid-ask ratio remained very positive, while Ether consolidated near $2,000, indicating that buyers are dominating the range phase of the trade.
As the price approached $2,150, this strength declined, reducing the buying pressure near the top of the move.
Hyblock’s data provided additional clarity on derivatives markets. Futures placement remains relatively balanced, with long traders accounting for approximately 59.4% of Ether futures on Binance.
Such a balanced outlook often leads to extreme price action as the market struggles to break above resistance levels in the immediate vicinity.
The data shows a divergence formation, while ETH’s past rally points to a rally to $2,800. With that in mind, it’s clear that Ether futures traders are cautious near ETH’s current range.
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