Ethereum price just concluded the week on a bearish leg after retreating by more than 15%. The Trump‑induced crash on Friday accounted for the bulk of its downward trend.
Fresh data suggests that the Ethereum price action might be on track to make a swift recovery despite the elevated tariff escalation concerns.
Large order book data revealed that whales had about $45 million worth of net spot inflows in the last 24 hours.
Things were more interesting on the derivatives segment where whales executed about $3.3 billion worth of ETH long positions during the same period. This confirmed that whales were betting on a price bounce back.
In contrast, ETH price experienced over $677 million worth of net spot outflows on Thursday. This marked the highest daily outflows it has experienced in recent history.
Spot flows were still negative in the last 24 hours, by about $234 million which was a noteworthy cool down compared to Friday.
However, there were some observations which also highlighted the potential for a demand resurgence.
Ethereum (ETH) Price Encounters Support on a Historically Significant Ascending Trend Line
ETH price established an ascending bottom range since April which underpinned its bottom range after every major retracement this year.
The cryptocurrency bounced off the same support line at least times in the past.
ETH bears stopped in their tracks on the same ascending trend line after the Friday crash. This was followed by a rally attempt fueled by some accumulation.
Ethereum ETH price crashed as low as $3,510 but recovered to a $3,741 press time price tag.
ETH price also formed a bullish divergence with its RSI. The cryptocurrency’s latest local low was lower compared to its previous local low on 25 September.
Meanwhile, its RSI was slightly higher compared to 25 September.
Ethereum Bulls May Still Have More Room for Upside?
Crypto analyst Dan Gambardello acknowledged that Etheruem has been receiving robust institutional liquidity injection over the last few weeks.
He noted that it was unlikely that institutions were doing so only for it to top now, especially as the business cycle entered a phase characterized by healthy liquidity.
Gambardello also noted that the latest Ethereum price action mirrored its performance in August‑September 2020 levels. The similarities included a consolidation on the charts.
ETH price embarked on a sizable rally after the August‑September 2020 cycle. If it maintains this historical correlation, then the cryptocurrency might be on track to enter yet another bullish phase in the coming weeks or months.
The flash crash did not appear to have a significant impact on Ethereum exchange reserves. The latter extended its decline to $15.9 million coins in the last 24 hours, which was a new multi‑year low.
The extended ETH exchange reserves confirmed that the cryptocurrency was still flowing out of exchanges. Yet another observation that favors long‑term upside, while signaling prevailing demand.
The latest crash turned out to be yet another market shakedown event. Only this time it was conducted at grand scale considering the heavy liquidations.
The crash also exposed just how smart money has been manipulating the markets. A recently created account on Hyperliquid generated over $72 million worth of profit from a perfectly timed short trade.
A few new accounts that achieved abnormally high profits were also observed, including those that executed Bitcoin short positions. Analysts suggest that such addresses were likely linked to insider trading.