Ethereum Faces Selling Pressure, Eyes $3.4K Support Amid ETF Buzz
Ethereum is under renewed short-term selling pressure, with exchange netflows turning positive at +3,000 ETH, signaling heightened token deposits onto trading platforms. Derivatives open interest has stabilized at $19–20 billion after falling from a $27 billion peak following the October 10 liquidation, reflecting a cautious, deleveraged market and a funding rate that briefly dipped negative. On-chain data shows Ethereum’s realized price support at $2,300 and an MVRV ratio of 1.67, indicating holders are moderately profitable and market fundamentals remain intact. Price action hinges on key levels: resistance near $3,800 and the critical $3,400 support zone, which traders should watch for potential breakouts or breakdowns. In the medium term, institutional interest from T. Rowe Price’s planned multi-coin ETF, likely to include ETH, underpins bullish sentiment, though near-term volatility risks persist if netflows continue.
Neutral
In the short term, heightened exchange netflows and recent liquidation-induced drop in open interest signal cautious sentiment and potential volatility around the $3,400 support, which could cap near-term upside. However, on-chain metrics like the $2,300 realized price and a 1.67 MVRV ratio suggest fundamental support, keeping holders profitable without overheating. Medium-term catalysts include T. Rowe Price’s planned multi-coin ETF, likely to include ETH, which underpin bullish sentiment but are unlikely to trigger immediate price spikes. Overall, the balance between selling pressure, solid on-chain fundamentals, and institutional ETF developments points to a neutral impact on Ethereum’s price trajectory.