Ethereum is consolidating near $3,780 with significant accumulation and liquidity inflows, but a short-term dip may occur to clear leveraged positions before a potential breakout.
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Ethereum price hovers near $3,780 amid strong on-chain accumulation and tightening supply.
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Over $2 billion in USDT minted and 244,000 ETH withdrawn from Coinbase indicate large-scale market positioning.
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Expert analysis suggests a possible brief dip to flush leverage before a sustained upward move.
Ethereum nears $3,780 with strong accumulation and liquidity signals; prepare for a possible leveraged dip before breakout. Stay informed with COINOTAG.
Ethereum Shows Signs of Strong Accumulation and Divergence
Ethereum (ETH) is currently trading near the $3,780 resistance level, exhibiting a higher low above $3,600—a bullish indicator. However, on Binance, Open Interest has declined, creating a divergence with the spot price. This suggests traders are reducing leverage and preparing for volatility. Funding rates have also cooled to near-neutral, indicating fading speculative momentum, which often precedes a healthier rally if support holds.
What Does the Divergence Between Price and Open Interest Mean?
The divergence between Ethereum’s spot price and declining Open Interest signals that traders are closing leveraged positions. This risk reduction often leads to short-term volatility but can set the stage for a stronger, more sustainable price rally. According to market data, this behavior reflects cautious optimism among investors.
Source: CryptoQuant
Tether’s $2 Billion Mint Signals Market Liquidity
The recent minting of $2 billion in USDT is a strong indicator of fresh liquidity entering the market. Such capital injections are typically used for asset accumulation or market-making activities. This influx, combined with Ethereum’s price action, suggests that large investors are positioning for a potential upward move.
244,000 ETH Withdrawn from Coinbase Indicates Long-Term Holding
On July 25th, more than 244,000 ETH, valued at nearly $900 million, were withdrawn from Coinbase. Large outflows from centralized exchanges often signal a shift from active trading to long-term holding, reducing circulating supply and potentially creating upward price pressure.
Source: CryptoQuant
Is a Price Flush Likely Before an Ethereum Rally?
Ethereum’s price is currently testing a critical resistance zone near $3,780, where long positions are heavily concentrated. According to Alphractal’s Liquidation Heatmap, this concentration suggests a potential short-term dip to clear leveraged longs before any breakout. The imbalance favors downside liquidation, which could serve as a reset for the market.
Source: Alphractal
Source: Alphractal
Joao Wedson, CEO of Alphractal, commented, “Will it really let so many longs walk away with massive profits before continuing its rally?” This highlights the likelihood of a corrective move to reset leverage.
Frequently Asked Questions
What factors indicate Ethereum’s current accumulation phase?
Strong on-chain data, including large USDT mints and significant ETH withdrawals from exchanges, indicate accumulation. These factors suggest investors are preparing for a potential price increase.
How does leveraged trading impact Ethereum’s price volatility?
Leveraged positions amplify price movements. When many traders hold long leverage near resistance, a price dip can trigger liquidations, causing sharp volatility before a possible rebound.
Key Takeaways
- Strong accumulation: Ethereum is consolidating near $3,780 with increased liquidity and supply tightening.
- Market positioning: $2 billion USDT minted and 244K ETH withdrawn from Coinbase signal large-scale investor activity.
- Potential dip: Leveraged long positions concentrated near resistance may cause a short-term price correction before breakout.
Conclusion
Ethereum’s price action near $3,780 reflects a critical phase of accumulation and risk management. While liquidity inflows and withdrawals suggest bullish intent, a brief dip to clear leveraged positions is likely. This reset could pave the way for a stronger rally, making it essential for investors to monitor on-chain signals and market dynamics closely.
