Key Takeaways:

• Ethereum’s support lies between $3,030 – $3,130, with resistance at $3,640 – $3,740.
• Ethereum’s metrics show a sustained bullish outlook, but market performance remains volatile.
• Without significant liquidity injections, Ethereum could test lower levels in the near future.

The price of Ethereum remains in the no-trade zone between $3,030 and $3,130 as support and $3,640 to $3,740 as resistance. According to analysts, a close above or below will determine the next trend.

A breakout above resistance would send Ethereum up toward highs, while a break into support could see further losses. On the contrary, consolidation is tight in Ethereum while it confirms its next vital move in this zone.

Despite the recent market correction, Ethereum is giving several signals that are very bullish, according to CryptoQuant. Key metrics have also pointed to sustained optimism among traders. Ethereum’s Estimated Leverage Ratio is high and suggests strong interest in risk-taking, while its moderately positive funding rates suggest long positions dominate without putting the market at risk of liquidation.

Besides, the Korea Premium Index, which measures the price gap between South Korean and global markets, has been in the positives, which goes to point out the rising demand for Ether within the region. These elements combined, with the growing Ether fund holdings, reflect confidence among institutional and retail investors despite some challenges the market is seeing.

Despite upbeat indications, Ether is struggling with liquidity. According to Alpha Extract, ETH is still trading within its fair value area in AE Global Liquidity Bands, continuing the downtrend seen for a while now.

Traditionally, this area serves as an indication of either the price stabilizing or the acceleration toward lower levels of liquidity. After reclaiming 3.5k dollars, the rally of Ether faded because of a weak supply area, making any weak rebound vulnerable to takedown pullbacks.

Without better liquidity within the next short period of time, it would have a risk of being in an upper band-to-band low test, a level at which prices head deeper to the downside. Given low liquidity and market volatility conditions, risks in the short-term may occur despite long-term bullish expectations.

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