• Ethereum momentum weakens as RSI signals bearish divergence, raising correction risks if buyers lose conviction.
• Exchange outflows exceed 600K ETH, and U.S. ETFs attract $900 million in inflows, showing strong long-term investor demand.
• CME futures hit a record 2.22 million ETH open interest, but shorts dominate, signaling heavy bearish pressure on Ethereum.

Ethereum has moved to a new all-time high of $4,960 and continues its new bullish run, attracting global interest. But the momentum now begins to weaken. Bearish divergences on the Relative Strength Index are highlighted by technical analysts. This indicates the possibility that buyers are becoming weakened. Ethereum may not be able to recover the peak with conviction, and it may soon enter a corrective phase.

Exchange data points to changing investor attitude. According to Cryptoquant netflows, the number of withdrawals has surpassed the number of deposits in this challenge in the span of four days by over 600,000 ETH. 

Source: CryptoQuant

Ethereum Demand Rises as Shorts Dominate Futures

Investors are shifting money into pockets, which is an indicator of a long-term investment. Meanwhile, U.S. spot Ethereum ETFs have been on the rise. They have recorded almost 900 million in net inflows since Monday.

Also Read: Ethereum Whales Accumulate Big as Market Eyes $5,000 Breakout

There is also heating in derivatives markets. According to Coinglass, ETH CME futures open interest increased by 8% in two days, with a record $2.22 million in ETH. The value was 2.05 million ETH on Monday. Nevertheless, shorts prevail in the contracts. 

Ethereum Tests Key Levels

Daan Crypto Trades added that ETH has been magnetizing on the diagonal support as it drifts off sideways. The key levels now are clear. The resistance level stands at the 2021 peak near $4,900. While local support sits between $4,000 and $4,100. Anything between would be tumultuous trading until the direction to follow is decided.

Source: X

This has already been witnessed in liquidations. CoinGlass data reports $101.66 million in ETH futures liquidations over the past 24 hours. It was the most drastic blow to long positions, which were unsuccessful with the loss of $68.52 million. There was a short liquidation of between $32.15 million. These statistics demonstrate how dangerous leveraged trading can be in a market where there can be a shift of sentiment in a few hours.

Source: Coinglass

Ethereum fundamentals are not weak even in the short term. The balances of exchange have been on the decline because the investors are adopting self-custody. There is an increasing institutional demand for Spot ETF inflows. The expansion of CME futures highlights the increasing activity of big players. All these indicators affirm that ETH is perceived as a key digital currency at a time when traders gird against turbulence.

Also Read: SharpLink Gaming Expands Ethereum Treasury to Nearly 800,000 ETH