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

• ETH’ 11% rebound from its current multi-year low has been underpinned by important accumulation
• As the value dips and dangers a hike, the query is obvious – 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 a further 453k ETH has been absorbed over the previous 5 days. Taken collectively, this concentrated bid zone could 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 way of spot markets, it could sign real shopping for curiosity, probably marking a powerful entry level for traders. 

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

At press time, ETH was buying and selling at $1,567, marking an 11% rebound from its current 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 lure or a golden alternative?

Greed or Concern – 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 current cycles. The next shopping for frenzy was logical, reflecting the greed aspect of the market.

Nonetheless, AMBCrypto’s current 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 the direction of greed. In reality, Glassnode’s data supported this pivot. 

The $1,461 zone has emerged as a possible help base, backed by 380k ETH in energetic 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 usually marks a market backside. Nonetheless, with the NUPL nonetheless in capitulation and FUD working 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 at the moment in unrealized losses could exit at breakeven, probably triggering a neighborhood breakdown.

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

Caught in a high-stakes gamble

Over the previous week, 100k ETH has flowed into spot exchanges, with internet inflows indicating sell-side stress as market individuals seemed 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 current 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 part aligned with ETH’s $2,600 native high on 21 February.

Supply: Glassnode

In opposition to this backdrop, ETH reclaiming the $2,000-handle seems to be structurally difficult. Regardless of seen accumulation, the positioning gave the impression to be leverage-skewed, missing conviction from spot or institutional flows.

Because of this, the press time setup bore all of the hallmarks of a bull lure.

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