Despite current weak spot demand and muted price action, data suggests Ethereum (ETH) might be experiencing an early bottoming phase. Analysis indicates ETH could stabilize around the $2,000 region, but the possibility of prices falling below this level in the coming weeks remains.
Ethereum Net Buying Volume Surges: A Sign of the Bottom?
Positive readings from the net buying volume metric indicate that market orders are leaning towards buyers. The recent surge in this metric mirrors the peak performance seen during the mid-2022 correction phase.
Historically, such expansions in volume have often preceded transitional periods in the market, where traders reconfigure and increase their positions as prices approach market bottoms, as seen in July 2022 and August 2020.
Furthermore, the Ethereum premium index on Coinbase has remained positive since February 24th. High premium levels suggest growing demand from US traders for the spot asset.
What Happens if Ethereum Falls Below $2,150?
In the short term, Ethereum's support aligns with the 100-day and 200-day Exponential Moving Averages (EMAs). However, the current price is tightening along an ascending trendline, and a break below could shift focus to lower liquidity zones.
Internal liquidity exists between $2,100 and $2,000, with a more concentrated liquidity zone appearing near $1,905.
If buyers can step in within this area, it could act as a demand zone, supporting a price rebound above $2,000.
