Ethereum’s [ETH] 11% rebound – Is greed fueling a bottom or is fear driving a trap?

• ETH’ 11% rebound from its latest multi-year low has been underpinned by important accumulation
• As the worth dips and dangers a hike, the query is evident – Are you in, or are you out?

On the time of writing, on-chain knowledge hinted at important Ethereum [ETH] accumulation. Particularly, 380k ETH was acquired on the $1,461-level and an extra 453k ETH has been absorbed over the previous 5 days. Taken collectively, this concentrated bid zone might sign the formation of a possible market backside.

Nonetheless, it’s essential to discern the character of this liquidity inflow. If the capital is predominantly coming into by spot markets, it might sign real shopping for curiosity, probably marking a robust entry level for traders. 

Conversely, if positioning is leverage-heavy, the market could be susceptible to draw back volatility. Particularly in a risk-off setting the place overleveraging can result in fast value corrections.

At press time, ETH was buying and selling at $1,567, marking an 11% rebound from its latest native low of $1,412 5 days in the past. In a market swinging between low costs and excessive danger, is the present setup a entice or a golden alternative?

Greed or Worry – Decoding the present shopping for frenzy

It’s been two years for the reason that altcoin final traded at $1.3k. Clearly, this dip is not like any it has skilled in latest cycles. The following shopping for frenzy was logical, reflecting the greed aspect of the market.

Nonetheless, AMBCrypto’s latest evaluation revealed that dormant whale wallets are starting to understand losses, with notable capital rotation. This mirrored fear-based flows. 

For ETH to breach key resistance ranges, market psychology should decisively tilt in direction of greed. In truth, Glassnode’s data supported this pivot. 

The $1,461 zone has emerged as a possible help base, backed by 380k ETH in lively accumulation. In the meantime, Ethereum has remained range-bound between the $1,548 and $1,599 resistance zones the place 793.9k and 732.4k ETH, respectively, are held.

This shopping for exercise alluded to rising greed-driven sentiment. In a bullish setting, such accumulation typically marks a market backside. Nonetheless, with the NUPL nonetheless in capitulation and FUD operating excessive, the rally appeared to lack clear affirmation.

Supply: Glassnode

If this accumulation isn’t supported by spot demand or institutional inflows, there’s a danger that consumers presently in unrealized losses might exit at breakeven, probably triggering an area breakdown.

Due to this fact, for this to be confirmed as a robust entry level for traders, a number of key situations should align.

Caught in a high-stakes gamble

Over the previous week, 100k ETH has flowed into spot exchanges, with web inflows indicating sell-side stress as market individuals regarded to liquidate positions. In the meantime, the derivatives market recorded 60k ETH in outflows, reflecting leverage-driven demand.

Moreover, Funding Charges (FR) have remained positive, reinforcing a long-heavy bias throughout futures. Whereas the construction was bullish, the setup will flip precarious when spot demand fails to help derivative-driven momentum.

In such instances, failure to clear overhead resistance might set off cascade liquidations. particularly if latest dip-buyers rotate out for profit-taking.

Including to the warning, mega whale wallets (>10k ETH) dropped to 875 – An eight-year low, down from 1,000 simply final month. This distribution section aligned with ETH’s $2,600 native prime on 21 February.

Supply: Glassnode

Towards this backdrop, ETH reclaiming the $2,000-handle appears structurally difficult. Regardless of seen accumulation, the positioning appeared to be leverage-skewed, missing conviction from spot or institutional flows.

Consequently, the press time setup bore all of the hallmarks of a bull entice.

Why? Speculative greed drives the upside. Nonetheless, whale exits, profit-taking, and spinoff over-exposure threaten to pull Ethereum again under $1,400 earlier than the market can verify any sustainable backside.