Ethereum (ETH) has reached a key resistance level and is showing overbought signals, with a long-term accumulation trend coexisting with short-term pullback pressure.

Ethereum (ETH) has recently been affected by increased trading activity and profit-taking, leading to an overheated market. Although it briefly broke through the 2600 USD resistance level over the weekend, it was unable to sustain the upward momentum, and on Monday, the price fell back below 2400 USD before rebounding to the current level of around 2550 USD.

Market data shows that Ethereum is approaching the key support level of $2500, with significant increases in market activity. A report from CryptoQuant indicates that this price fluctuation is mainly due to profit-taking and stagnation in supply at key price levels. Analysts believe that the market may enter a correction cycle in the short term, needing to undergo consolidation to accumulate new demand, which will then drive a medium-term breakthrough of the resistance zone.

Despite short-term market signals indicating cooling pressure, long-term holders have shown a continuous increase in their positions. Data shows that the amount of Ethereum held on centralized exchanges has fallen to a historical low, with only 4.9% of the total supply of Ethereum held on trading venues as of May 19. Over the past five years, a total of 15.3 million ETH has flowed out of exchanges, with over 1 million ETH flowing out of exchanges just last month.

On-chain data further confirms this information. Whale addresses holding over 10,000 ETH have accumulated an additional 450,000 ETH since late April. As of May 10, their total holdings reached 40.75 million ETH, setting a new high since March.
In addition, the Pectra upgrade has also boosted market confidence, with inflows into Ethereum-related investment products reaching $205 million in the past week and a cumulative inflow of $757 million year-to-date.

Conclusion:

In summary, Ethereum is currently at a critical technical juncture, with short-term pullback pressure interwoven with a long-term accumulation trend.
Although the market shows signs of overheating in the short term due to profit-taking and key resistance levels, the continuous decrease in exchange reserves, the accumulation of whale addresses, and the inflow of funds into investment products all indicate that the market has strong confidence in the long-term value of Ethereum.
However, the future price direction of Ethereum will depend on the depth of the short-term pullback and the sustainability of long-term demand. Investors need to closely monitor market dynamics and make cautious decisions.
#以太坊 # ETH #加密货币市场 # market analysis