Ethereum prices struggle to keep momentum below $4,300 as overheated futures markets and rising exchange reserves create short-term sales pressure.
summary
- Ethereum trades nearly $4,290, falling below $4,300 after a monthly profit of 16%.
- The rising exchange reserves and severe futures flows on selling indicate short-term pressure.
- Although technology is mixed, ETF inflows and the Ministry of Finance demand support a medium-term outlook.
At the time of writing, Ethereum’s price (ETH) has risen 2.2% from the previous day, trading at $4,290. The token has hovered between $4,080 and $4,776 over the past seven days, losing 9% in that time, but maintaining a 16% profit each month. Only 12% separate ETH from the $4,878 peak set in November 2021.
Ethereum on-chain and derivatives outlook
Market analysts point to a split in Ethereum structure. Futures activity is beginning to heat up, but the spot market remains largely stable. Encrypted contributor XWIN Research Japan, an analysis on August 21, showed that exchange reserves have increased slightly, increasing coins for sale.
Furthermore, cumulative delta data shows that there are more sell orders than buy orders. The futures volume map also shows clusters of activities that are close to recent highs. This is a pattern that often precedes forced liquidation and significant price fluctuations.
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The combination of slow spot flow and overheated futures put Ethereum in a delicate position. In the short term, stretch leverage could potentially bring ETH back to the $3,950-$4,100 range if a wave of liquidation hits the market.
However, the medium-term outlook remains positive. The influx of institutional exchange trade funds, the increased use of ETH at the Corporate Treasury, and the expanding role of Ethereum in real-world asset tokenization continue to provide strong underlying demand.
The report suggests that once leverage resets and sales advantage flows settle, Ethereum begins to rise again, potentially causing resistance to exceed $4,300.
Ethereum price technology analysis
Ethereum’s daily chart shows a mixed setup. At 57, the relative strength index is in neutral territory, and despite the bearishness of momentum and MACD, it has not been over-acquired or over-sold.
Ethereum Daily Chart. Credit: crypto.news
If the 10-day exponential and simple moving average flash sales signal exceeds the current price, the short-term moving average is placed against the bull. However, longer time frames continue to support the upward trend as the 20-day, 30, 50, 100, and 200-day averages remain comfortable and comfortable.
This suggests that short-term resistance is clear, but the overall structure of the assembly has not yet collapsed. Bollinger bands are making them even more strict around the current price range. This is often a sign of increased volatility.
Ethereum can recover strength, try another breakout above $4,300, and try another breakout towards $4,500 when futures positioning normalizes, but once leverage rewinds, a drop from $3,950 to the $4,100 range is still possible.
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