- Ethereum orderbook ratio indicated low supply and high demand at $3886.
- ETH could revisit $3500 at the 200EMA before rally continuation.
Ethereum [ETH] showed notable 10% bid imbalance within the 0-5% depth range of the order book, signaling a potential supply shortage and demand at the price level around $3,886.76.
These price points favored bids by 10%, suggesting a stronger buying interest than selling pressure.
This imbalance indicated bullish sentiment as more traders were willing to purchase ETH at or above that market price, possibly driving prices higher if the trend persists.

Source: Hyblock Capital
Additionally, there were spikes in volume of trades correlating with significant price movements, both upward and downward.
The increase in bid dominance along with high trade volumes points to possible continued bullish momentum for ETH. Historical trends show such imbalances often precede price increases.
Inflow volume into exchanges
However, ETH saw a surge in inflow volume into exchanges as it rose by 208.96% over the past 24 hours. This suggested that investors could be moving ETH to exchanges possibly to take profits or prepare for potential selling.
The weekly change showed a decrease of 17.57% in inflow volume, indicating less ETH was moved to exchanges compared to the previous week, which could signify a reduction in selling pressure.

Source: IntoTheBlock
Conversely, monthly change increased by 61.49%, suggesting that over the past month, there had been generally higher inclination to transfer ETH to exchanges than in the preceding periods.
The influx could temper the bullish outlook suggested by the orderbook ratio, which indicated low supply and high demand.
As inflows suggest potential selling pressure, it could lead to a temporary decline in ETH prices despite underlying demand signals.
How low can ETH go before bottoming?
With that in mind, ETH could be poised for a small pullback before reversing for a bullish trend continuation as it traded around $3689, following a descent from the higher resistance near $4,082.
Trading volume increased during sell-offs, hinting at decline but with the RSI near the oversold zone, now below 30, suggested an overextended bear move that could lead to a reversal if buyers step in.
ETH falling below 20EMA and 50EMA signaled short-term bearish momentum, contrasting with the potential long-term support provided by the 200EMA.

Source: Trading View
Ethereum showed signs of testing a key support level at the 200EMA around $3,500, with potential for reversal indicated by an oversold RSI.
If this level holds, a rally towards higher levels could be anticipated as funding rates hit a multi-month high, indicating increased trader confidence and a potential anticipation of higher prices.
The funding rates’ spike above 0.04% coinciding with price swings represented a sharp increase in trader leverage, often preceding price volatility.

Source: CryptoQuant
Read Ethereum’s [ETH] Price Prediction 2024–2025
High funding rates indicated strong bullish market sentiment, though they may lead to short-term corrections due to over-leveraging.
The resurgence of high funding rates, like those in early 2024, shows significant market involvement and optimism. However, this could risk a correction if the market overheats.
- Ethereum orderbook ratio indicated low supply and high demand at $3886.
- ETH could revisit $3500 at the 200EMA before rally continuation.
Ethereum [ETH] showed notable 10% bid imbalance within the 0-5% depth range of the order book, signaling a potential supply shortage and demand at the price level around $3,886.76.
These price points favored bids by 10%, suggesting a stronger buying interest than selling pressure.
This imbalance indicated bullish sentiment as more traders were willing to purchase ETH at or above that market price, possibly driving prices higher if the trend persists.

Source: Hyblock Capital
Additionally, there were spikes in volume of trades correlating with significant price movements, both upward and downward.
The increase in bid dominance along with high trade volumes points to possible continued bullish momentum for ETH. Historical trends show such imbalances often precede price increases.
Inflow volume into exchanges
However, ETH saw a surge in inflow volume into exchanges as it rose by 208.96% over the past 24 hours. This suggested that investors could be moving ETH to exchanges possibly to take profits or prepare for potential selling.
The weekly change showed a decrease of 17.57% in inflow volume, indicating less ETH was moved to exchanges compared to the previous week, which could signify a reduction in selling pressure.

Source: IntoTheBlock
Conversely, monthly change increased by 61.49%, suggesting that over the past month, there had been generally higher inclination to transfer ETH to exchanges than in the preceding periods.
The influx could temper the bullish outlook suggested by the orderbook ratio, which indicated low supply and high demand.
As inflows suggest potential selling pressure, it could lead to a temporary decline in ETH prices despite underlying demand signals.
How low can ETH go before bottoming?
With that in mind, ETH could be poised for a small pullback before reversing for a bullish trend continuation as it traded around $3689, following a descent from the higher resistance near $4,082.
Trading volume increased during sell-offs, hinting at decline but with the RSI near the oversold zone, now below 30, suggested an overextended bear move that could lead to a reversal if buyers step in.
ETH falling below 20EMA and 50EMA signaled short-term bearish momentum, contrasting with the potential long-term support provided by the 200EMA.

Source: Trading View
Ethereum showed signs of testing a key support level at the 200EMA around $3,500, with potential for reversal indicated by an oversold RSI.
If this level holds, a rally towards higher levels could be anticipated as funding rates hit a multi-month high, indicating increased trader confidence and a potential anticipation of higher prices.
The funding rates’ spike above 0.04% coinciding with price swings represented a sharp increase in trader leverage, often preceding price volatility.

Source: CryptoQuant
Read Ethereum’s [ETH] Price Prediction 2024–2025
High funding rates indicated strong bullish market sentiment, though they may lead to short-term corrections due to over-leveraging.
The resurgence of high funding rates, like those in early 2024, shows significant market involvement and optimism. However, this could risk a correction if the market overheats.
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