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Ethereum Netflow Spikes To Derivatives Markets – Is a Price Swing on the Horizon?

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Ethereum (ETH) has experienced a lackluster phase in recent weeks, with the asset seeing small price surges but still struggling to hold near or above the $3,000 mark after a brief rally in August.

According to a recent analysis from a CryptoQuant analyst, the behind the scenes of this price struggle for ETH has been quite interesting, with the asset seeing a significant shift in its netflow.

This shift in Ethereum’s netflow could have significant implications for ETH, potentially influencing the market’s reaction positively or negatively.

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Dissecting The Ethereum Netflow

The CryptoQuant analyst Amr Taha revealed in a recent post on the CryptoQuant QuickTake platform that Ethereum has recently experienced a spike in netflows, with approximately 96,000 ETH moving into derivative exchanges.

Bitcoin Exchange Netflow.
Bitcoin Exchange Netflow. | Source: CryptoQuant

According to Taha, this influx could indicate that traders are positioning for potential price shifts, as large transfers to derivatives platforms have historically preceded periods of increased volatility or even corrections.

Taha’s analysis, backed by previous spikes in May and early July, suggests that Ethereum’s current activity might foreshadow a heightened period of market movement. The analyst wrote:

The latest spike in netflow could signal another period of heightened market activity, potentially a price correction or a sharp move based on trader positioning.

Market Sentiment Drawn From Bitcoin

In addition to Ethereum’s netflows, Taha delved into Bitcoin’s Futures Sentiment Index, observing that this metric shows peaks in sentiment that may serve as indicators of broader market behavior.

Bitcoin futures sentiment index.
Bitcoin futures sentiment index. | Source: CryptoQuant

He pointed out three instances where the sentiment index spiked, marked by red-circled peaks (in the chart above), each time coinciding with a local market top. This trend implies that, following peaks in trader sentiment, Bitcoin’s price typically experiences a decline.

The sentiment index, thus, can serve as a “contrarian indicator”—when optimism peaks, price corrections often follow. These sentiment patterns may signal that investors should brace for potential volatility for Ethereum, which is highly correlated with Bitcoin.

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Meanwhile, Ethereum has continued to hover somewhere below $3,000. So far, the asset has registered a correction in the past week, dropping by 3.1%. However, the past day performance is attempting to be more positive.

Over this period, Ethereum has seen a slight increase of 0.9%, rising to as high as $2,559 earlier today before now trading for $2,541, at the time of writing.

Ethereum price chart on TradingView
ETH price is moving upwards on the 2-hour chart. Source: ETH/USDT on TradingView.com

Despite the notable fluctuation the asset has seen in the past week alone, rising to above $2,700 and dropping below $2,500, Ethereum daily trading volume seems to have maintained composure.

Data from Coingecko shows that this metric has remained between $15 billion and $19 billion in the past week with no major spike or decline.

Featured image created with DALL-E, Chart from TradingView



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Ethereum Set For A Bullish Breakout? Expert Cites Strong Upside Potential

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As Ethereum begins to show positive price action once again, the altcoin is seeing a wave of bullish predictions from multiple crypto experts about its trajectory in the short term, suggesting a potential rally in the upcoming weeks.

A 63% Rally For Ethereum Could Be On The Horizon

In an optimistic post, market expert and enthusiast, Javon Marks has expressed his confidence about a possible bullish breakout, pointing to a robust upside momentum in the near term. The expert points to several market indications and technical setups that show promising signals, with ETH overcoming recent resistance levels that could set the stage for a price spike.

According to the expert, Ethereum seems to be getting close to another significant breakout point, and a bullish break is likely to take place due to a prior bull pattern confirmation and breakout, implying a similar price movement for the altcoin to past positive trends.

As a result, Javon Marks believes that this key breakout will trigger a price growth to the $4,080 level, which is more than 63% away from its current value movement. In addition, the analyst claims that development might turn out to be the start of a much bigger upside in the upcoming weeks.

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Ethereum breakout could trigger a 63% growth | Source: Javon Marks on X

Javon Marks’ anticipated breakout coincides with the growing sentiment and optimism toward the altcoin, signifying possible renewed momentum. Mark’s prediction also aligns with Ash Crypto, another market analyst and trader, who has forecasted that ETH could hit a new all-time high in 2025.

After examining Ethereum’s recent price action, Ash Crypto noted that the altcoin has reached its major trendline support capable of igniting a notable price surge. This is due to the fact that the digital asset witnessed a hard pump the last 3 times it retested the major trendline.

The first time ETH retested the trendline in 2022, it surged by over 123% in the period of 3 months, the second time caused about 107% increase in 7 months, and the last, which was in 2023 triggered an over 158% upswing in about 6 months. Thus should the digital asset replicate this move, Ash Crypto is confident that it could witness a 100% rally from its present value to a new all-time high in 2025.

ETH Preparing For A Rebound?

Following a few days of downside movement, ETH investors are beginning to show their presence in the market, pushing the altcoin toward a possible rebound. Ethereum is presently trading at $2,460, demonstrating a brief upward movement of about 0.60% daily increase, slowly approaching the $2,500 price level.

Given the heightened interest in ETH, the asset could continue to print more gains as bulls have formed strong support at the $2,450 mark. Data from CoinMarkCap reveals that the trading volume of ETH has surged by more than 20% in the past day.

Ethereum
ETH trading at $2,475 on the 1D chart | Source: ETHUSDT on Tradingview.com

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Ethereum Risk-To-Reward Ratio Is ‘Too Good To Pass Up’ – Top Analyst Sets $6,000 Target

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Ethereum is trading at a critical demand level following an 11% pullback from recent local highs. This dip has analysts and investors on edge, as losing this level could trigger a wave of aggressive sell-offs, potentially driving ETH prices lower. 

Amid this concern, however, prominent analyst Ali Martinez has shared an optimistic technical analysis, highlighting a strong risk-to-reward setup on the Ethereum chart. According to Martinez, the current level offers a compelling entry point, suggesting that Ethereum could see a significant upside if it holds support.

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The timing of this potential rebound is especially noteworthy with the US election tomorrow, an event that could heavily influence broader market sentiment. Many in the crypto community anticipate that election outcomes will set the stage for a new rally, with Ethereum positioned to capitalize if bullish momentum returns. 

In the coming days, all eyes will be on whether ETH can defend this demand zone, as its performance could either validate or challenge the prevailing bullish expectations across the market. For now, Ethereum’s price level remains pivotal, and the market is closely watching for signs of direction amid the election and broader economic uncertainties.

Can Ethereum Hold Above Key Demand?

Ethereum is trading at a pivotal support level of around $2,450, which many analysts view as a critical “last line of defense” for bulls. Ethereum could experience a deeper decline if this level fails, potentially putting it at risk of underperforming against competitors like Solana or Bitcoin, which have recently shown more relative strength. 

Investors share this concern and are closely watching ETH’s movement as it teeters on the edge of this crucial support.

However, top crypto analyst Ali Martinez has presented a more optimistic perspective on X, suggesting that Ethereum may be poised for a significant recovery. In his recent technical analysis, Martinez emphasized that the current risk-to-reward ratio for ETH is highly attractive for a long position, especially for those with a longer-term outlook. 

Ethereum holding key demand level
Ethereum holding key demand level | Source: Ali Martinez on X

He disclosed that he had set a stop-loss below $1,880—a level limiting downside risk—while targeting an ambitious price of $6,000. This target represents a potential 145% rally from current prices, underlining Martinez’s confidence in Ethereum’s potential upside if it can hold this crucial zone.

The next few days, or even hours, could prove decisive for Ethereum as it consolidates at $2,450. To move toward Martinez’s target, ETH must build strength and start challenging local highs, signaling buyers are stepping in. 

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The upcoming price action will reveal whether Ethereum can revive its bullish momentum or succumb to further downside pressure. For now, the $2,450 support is a critical threshold for ETH’s near-term trajectory.

ETH Technical Analysis

Ethereum (ETH) is trading at $2,450 after a strong rebound following a failed breakdown below the $2,400 mark. This resilience is encouraging for bulls who believe ETH is primed for a significant rally, especially if Bitcoin can break above its all-time high.

 However, this crucial support level alone isn’t enough to spark a sustained uptrend. Bulls must push the price above the 200-day exponential moving average (EMA), currently at $2,762, to confirm momentum and establish a stronger bullish outlook.

ETH testing crucial demand at $2,450
ETH testing crucial demand at $2,450 | Source: ETHUSDT chart on TradingView

The 200-day EMA has acted as a formidable resistance since early August, repeatedly pushing ETH’s price down. A breakout above this moving average would indicate a critical shift, potentially turning it into a new support level. This move would set the stage for ETH to challenge higher levels, fueled by renewed buyer confidence and broader market optimism. 

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Conversely, if bulls fail to reclaim this EMA, Ethereum may face continued downward pressure, leading to further testing of key supports. For now, ETH’s support of around $2,450 keeps hope alive for bulls aiming for a breakout, but reclaiming the 200-day EMA remains essential to fuel the next leg of a bullish rally.

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Ethereum Researchers Leave EigenLayer Advisory Role Following Controversy — Details

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Two Ethereum Foundation researchers Justin Drake and Dankrad Feist have disclosed the decisions to drop their advisorship positions with EigenLayer. The two experts took on this role with the restaking protocol earlier in May 2024 — but much to the disappointment of the crypto community.

As reported by Bitcoinist, the prominent crypto figures took the step to join EigenLayer as advisors, with Drake specifically promising to reinvest his earnings into the ETH ecosystem. Nevertheless, the crypto community on the social media platform X raised their concerns about conflicts of interest surrounding the appointment of the Ethereum researchers. 

Justin Drake Apologizes To Ethereum Community And Foundation 

In a November 2 post on X, Justin Drake announced that he dropped the advisory role with EigenLayer in September 2024 and has also left the Ultra Sound team. The researcher also apologized to the Ethereum community and his colleagues at the foundation for the controversy surrounding his appointment.

Drake added in the post:

Going forward I will turn down all advisorships, angel investments, and security councils. This personal policy goes above and beyond the recent EF [Ethereum Foundation]-wide conflict of interest policy, not because that was asked of me but because I want to signal [a] commitment to neutrality.

As highlighted in Drake’s message, the crossover to Eigenlayer by the two researchers forced the Ethereum Foundation to craft a conflict-of-interest policy in order to avoid a repeat of such incidents. Following the moves, executive director Aya Miyaguchi was the first to indicate the foundation’s commitment to addressing the issue of conflict of interest.

Ethereum

Source: AyaMiyagotchi/X

More Danksharding Upgrades?

Oddly, Dankrad Feist at the same time released a message on X announcing his decision to resign from his advisorship role at EigenLayer. The famous creator of the “Danksharding” concept reiterated that while the contract was negotiated in good faith, he understands how the relationship with EigenLayer could be easily misunderstood.

Feist noted:

Eigenlayer is a great project that I hope will continue to complement Ethereum well in several ways. But Ethereum has a lot of important work to do and I will focus all my attention on getting it done. This will allow me to be more effective in implementing Danksharding and other important projects.

These announcements garnered positive responses from the crypto community on the X platform, with several notable figures labeling their decisions to leave EigenLayer a good call. 

Ethereum

The price of ETH under bearish pressure on the daily timeframe | Source: ETHUSDT chart on TradingView

Featured image from Getty Images, chart from TradingView



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