• Ethereum is trading near $4,300 after a -4.02% dip, still within its accumulation zone.
• Key support lies at $4,123–$4,272, seen as the “last stop” before a potential breakout.
• Derivatives volume surged 74%, but open interest dropped, signaling cautious market sentiment.

Ethereum has seen a pullback in its recent price movement. At the time of writing, Ethereum is trading at $4,300.90, with a 24-hour trading volume of $77.88 billion and a market capitalization of $523.74 billion. ETH has dropped -4.02% within the last 24 hours, sparking fresh discussion in the market regarding where ETH is going next.

Ethereum Still Far From Danger Zone

Popular crypto analyst Merlijn The Trader pointed out that Ethereum is “nowhere near the danger zone” despite the recent decline. He clarified that the asset remains within its accumulation zone, traditionally where long-term investors position themselves ahead of the next upswing.

In his opinion, past cycles indicate that the blue and green areas are the “boarding gates” before major upswings begin, while the red area usually signals when late entrants rush in and long-term holders begin taking profits.

Ethereum Dip Could Trigger Next Rally

Adding to this view, analyst More Crypto Online noted that ETH’s recent movement might be merely a B-wave fakeout. If such a scenario plays out, ETH would register one more dip before preparing for its next powerful upswing. He emphasized that investors should pay very close attention to the level of $4,123–$4,272, labeling it “the last stop before the liftoff.

In the near term, Ethereum’s correction is viewed more as a calming process than as a major reversal. As analysts focus on signals of accumulation and identify key price levels, the market will watch whether ETH can stabilize and prepare for another upward move.

Also Read | Ethereum Whale Activity Fuels Hopes for $5,800 Price Target

Ethereum Derivatives Show Mixed Momentum

The Ethereum derivatives market saw a significant increase in activity as the volume rose 74.16% to $124.09B. This surge illustrates greater participation and growing interest in ETH contracts, reflecting stronger enthusiasm within the marketplace.

Meanwhile, open interest fell by -3.67% to $61.59B. This suggests that although more contracts are being traded, numerous position closures are also taking place, indicating cautious sentiment among market participants.

Observing the OI Weighted funding rate, the rate stands at 0.0058%. This implies that the market is balanced at the moment, with neither long nor short positions showing clear dominance. Such stability typically signals reduced speculative activity.

Overall, ETH’s derivatives data illustrates strong trading activity but cautious hedging. High volume with low open interest and stable funding rates indicate an active market that is waiting for more clarity in direction.

Also Read | Ethereum’s Powerful Next Chapter: Vitalik Buterin on Treasury and Privacy