Ethereum (ETH) has demonstrated remarkable strength over the past week, posting gains of over 30% and currently trading near $2,486, up 1.76% from its previous close of $2,443. Following the sudden price jump, market order dynamics in perpetual futures have shown notable shifts, with the 30-day moving average of Net Taker Volume shifting positive. This indicates that market participants executing active buys are currently outpacing sellers in the derivatives space. Trading activity remains robust, with 24-hour volume standing at 1.02 times its 20-day average within a 52-week price range of $1,507 to $3,398.
Derivatives Dynamics: Massive Liquidations and Contracting Open Interest
Net Taker Volume measures the net difference between market buy orders and market sell orders in perpetual futures contracts. While the metric's positive flip underscores active upside interest, fresh speculative capital inflows into ETH futures remain muted. The dramatic price advance recorded last week was largely catalyzed by a massive short squeeze, triggering the largest short liquidation event in Ethereum's history.
As bearish traders were forced to buy back positions to cover their leverage, prices expanded sharply. However, the elimination of these leveraged short bets caused total open interest to drop by approximately 500,000 ETH over the seven-day period. Concurrently, the Exchange Leverage Ratio (ELR)—which compares exchange reserves to open interest—has trended lower, signaling a clear phase of market deleveraging.
Spot Market Resilience: Exchange Reserves Plunge by 101K ETH
Despite the lack of aggressive new leverage in derivatives, spot market demand has stepped in to absorb profit-taking supply. On-chain analysis places the average cost basis for Ethereum investors around $2,300. Historically, as spot prices rise significantly above this threshold, the incentive for holders to lock in gains increases.
Remarkably, exchange data reveals that Ethereum Exchange Reserves shrank by roughly 101,000 ETH over the past week. Rather than depositing coins onto exchanges to liquidate, market participants have been withdrawing assets into private storage. This substantial reserve outflow reflects persistent net spot buying pressure that continues to defend the current price zone.
Technical Indicator Overview: Overbought Readings Pose Pullback Risk
On the daily candlestick chart, Ethereum continues to trade well clear of its short- and medium-term trendlines. The 20-day Exponential Moving Average (EMA) sits at $2,221 (live value at $2,190), the 50-day EMA rests at $2,042 (live value at $2,022), and the 100-day EMA sits at $2,003. The 200-day EMA at $2,204 now serves as a major long-term baseline for structural trend support.
However, short-term momentum indicators suggest the rally is becoming stretched. The 14-day Relative Strength Index (RSI) is currently reading 77, deep inside overbought territory. Similarly, the Stochastic Oscillator stands above 90, with the fast line at 91 and the signal line at 89. These extreme oscillator values indicate that ETH may require a phase of sideways consolidation or a minor technical pullback before attempting further upside expansion.
Live Price Levels, Pivot Targets, and Moving Averages
According to live technical calculation, Ethereum faces immediate daily pivot resistance around $2,493. The first resistance barrier R1 lies at $2,503, followed by R2 at $2,519 and a major technical resistance level at $2,736. Beyond $2,736, subsequent target zones are located at $2,885 and $3,241, where profit-taking activity may re-emerge.
On the downside, immediate support S1 is anchored at $2,477, with S2 at $2,468. Below these intraday levels, horizontal support near $2,431 offers firm footing ahead of the 20-day EMA. A broader decline would bring into focus the horizontal support cluster spanning $2,172, $2,042, and $2,003, followed by reaction low support at $1,961 and deeper cushions at $1,809 and $1,701.
Broader Cryptocurrency Market: Bitcoin, XRP, and Hyperliquid
The broader digital asset market reflects similar consolidation after recent strength. Bitcoin (BTC) is holding firm near $78,000 to $79,000 after completing its strongest weekly gain in three years, with bulls targeting a push through $80,000 toward the $82,500 supply area. Spot BTC ETFs extended their positive run with a seventh consecutive day of net inflows, adding $314 million on Tuesday, while whale entities shifted $5 billion into tax-deferred swap structures. Market sentiment also benefited from the US Treasury doubling its debt buyback operations.
Meanwhile, Ripple (XRP) tested support at $1.40 before stabilizing around $1.43, though whale distribution presents ongoing profit-taking overhead. Hyperliquid (HYPE) gained 4% to trade near its recent peak of $83.30, supported by $7.51 million in daily ETF inflows compared to $5.74 million on the previous session.
