Ethereum Rises 7% on Familiar Rebound Cue, But On-Chain Data Flags Critical Risks
Ethereum rebounded 7% based on a bullish divergence, but on-chain data suggests this rally faces significant resistance and weaker support.Summary
Ethereum's price recently increased by about 7% following a bullish divergence on the 8-hour Relative Strength Index (RSI), a pattern that previously triggered a 15% rally in early March. However, the current recovery appears weaker because on-chain indicators signal potential trouble ahead. During the earlier rally, Ethereum saw continuous exchange outflows and accumulation by whale wallets, indicating strong buying pressure. Conversely, the current rebound is marked by significant exchange inflows (suggesting selling pressure) and a reduction in holdings by large wallets.
Furthermore, on-chain cost-basis data (URPD) reveals dense resistance clusters between approximately $2,030 and $2,180, where substantial supply is concentrated. For the rally to be sustained, Ethereum must decisively break above the critical $2,200 resistance level, which capped the previous move, and potentially aim for $2,270. Failure to hold above $2,000 would likely invalidate the rebound thesis and reinforce the broader bearish structure.
(Source：BeInCrypto)