Ethereum

Ethereum Traders Just Flipped Bullish, But History Says This Is a Major Red Flag

Ethereum’s bounce toward $3,500 triggered instant FOMO, but Santiment says extreme optimism usually means price is about to disappoint.

Ethereum traders have swung sharply from extreme bearishness to extreme bullishness within just a few days, based on social media sentiment.

But fresh data suggest that when ETH nearly rebounded to $3,500 on Thursday, the crowd interpreted the move as a confirmation that the asset was “back in business.”

ETH Trader FOMO

Santiment warned that this sudden pivot is similar to the same pattern seen earlier in the week, when retail panic selling actually contributed to the rebound. Now, the rapid return of FOMO could similarly stall further upside.

According to the analytics platform, prices have shown a tendency to move in the opposite direction of the crowd, and that more neutral sentiment phases have proven to be stronger buy signal environments than euphoric ones.

Crypto trader Ted Pillows also noted that even though the altcoin is showing some rebound after this week’s sharp decline, the recovery lacks conviction. According to Pillows, the current move higher, though modest, is being driven largely by short positions being closed rather than new spot buyers stepping in. He added that Ethereum needs to reclaim the $3,600-$3,700 price range with meaningful inflows to establish strength and dismiss the risk of further downside. Without that confirmation, Pillows believes the odds still favor lower prices from here.

Despite the near-term uncertainty, some traders say the bigger picture is still pointing toward a substantial upside scenario. For instance, crypto trader “Trader Tradigrade” said that ETH’s monthly chart is currently developing what he describes as a massive Inverse Head and Shoulders pattern, with a potential price target of $14,000 once confirmed.

“Wet Blanket” Phase

As the crypto market remains sluggish, Galaxy CEO Mike Novogratz believes that this could be due to long-term holders rebalancing their net worths and diversifying away from massive concentrated holdings after a very long bull market. Novogratz deems this to be a healthy sign in the medium and long term as these positions get distributed. In the short run, however, he said that “it’s a proverbial wet blanket” and has weighed on prices.

About the author

Chayanika has been working as a financial journalist for six years. A graduate in Political Science and Journalism, her interest lies in regulatory implications with a focus on technological evolution in the crypto realm.

Ethereum

Superstate Launches Onchain Direct Issuance Programs for Tokenized Shares on Solana and Ethereum

Financial technology firm enables SEC-registered companies to raise capital on Ethereum and Solana using stablecoins, streamlining public market infrastructure. Superstate announced its Direct Issuance Programs, allowing public companies to conduct capital raises directly on blockchain platforms. The program enables companies to issue tokenized shares instantly to KYC-verified investors using stablecoins…
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Ethereum

Ethereum Price Analysis: ETH Stopped at $3.2K, is Another Major Crash Coming?

Ethereum’s recent rally has stalled at the $3.2K resistance zone, where heavy selling pressure triggered a clear rejection.

The asset is now trading within a narrow consolidation range, and the next decisive breakout is likely to dictate the following major move.

Ethereum Technical Analysis

By Shayan

The Daily Chart

Ethereum’s rebound from the $2.6K support zone extended into a key supply area, where a daily FVG converges with a long-standing downward trendline near $3.2K.

This confluence attracted significant selling interest, halting the advance and producing a sharp rejection. The pullback has also resulted in the formation of a daily lower low, keeping the broader structure tilted bearish.

With this shift, the possibility of a deeper retracement has increased, making the $2.6K support zone the primary downside target.

For now, Ethereum remains range-bound, and a breakout from this tight structure will likely determine the next dominant trend.

The 4-Hour Chart

On the 4-hour chart, Ethereum initially broke above the short-term descending trendline and pushed higher.

However, strong supply at the $3.2K region prompted a reversal, sending the price back toward a critical support area composed of a bullish order block overlapping a prior breaker block.

This layered confluence increases the likelihood of a reaction in this zone, making it a decisive level in the short term.

As a result, the market continues to fluctuate within the broader $3K–$3.6K range, suggesting that more consolidation is likely before a clear direction emerges.

Sentiment Analysis

By Shayan

The weekly liquidation heatmap shows that the recent rejection was accompanied by a sweep of the liquidity pool, which sits just below the $3032 market low, capturing buy-side liquidity.

Such liquidity grabs often precede a fresh upward leg as the market seeks higher pockets of liquidity.

At present, the next major cluster rests around the $3.3K region, acting as a natural price magnet following the recent sweep. From a supply-demand standpoint, this positions Ethereum for a short-term upward move toward that zone before any broader correction resumes.

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Ethereum

Fusaka Sparks ETH Frenzy as Buyer Aggression Reaches 4-Month High

Analysts say a break above 1.0 in the buy/sell ratio could launch Ethereum toward the $3,500 to $4,000 level.

Ethereum (ETH) traders snapped back into action this week as buyer aggression climbed to its strongest reading since early August, according to the latest Binance futures data.

The move follows the Fusaka network upgrade, activated on December 3, which appears to have shifted mood across derivatives and on-chain metrics almost immediately.

Market Sentiment Flips Following Upgrade

According to pseudonymous analyst CryptoOnchain, the Taker Buy/Sell Ratio for ETH futures on Binance jumped to 0.998, marking the metric’s highest level since early August and representing a sharp reversal from recent lows around 0.945.

“This rebound from the lows (0.945) shows that futures traders view the Fusaka update as a bullish catalyst and are actively accumulating long positions,” stated the analyst. “Although the price is still hovering around $3,130, the acceleration of this ratio has outpaced the price itself, acting as a leading indicator.”

They also noted that a break above the 1.0 level would strongly suggest the recent corrective period has ended, and kickstart a run “toward the $3,500 to $4,000 targets.”

Spot market data also seems to support the shift. As noted by Arab Chain, the Cumulative Volume Delta (CVD), which tracks net buying and selling pressure, has shown positive movements with Ethereum trying to stabilize above $3,100. This, according to the firm, points to new liquidity entering the market.

Furthermore, so-called shark wallets, holding between 1,000 and 10,000 ETH, have been key drivers, with their accumulation helping push the price to a three-week peak of $3,230 yesterday.

The upgrade was preceded by a record-setting spike in network activity on November 26, when total gas used hit 215 billion, indicating heavy pre-upgrade positioning by users and developers.

Institutional Divergence and Future Price Trajectory

While futures traders and large holders are showing renewed interest, there still exists a significant divergence in institutional demand. Data from Bitwise revealed a steep drop in purchases by public Digital Asset Treasuries (DATs).

Their monthly accumulation fell 81% from August to November 2025, dropping to 370,000 ETH last month. Observers have linked this dip to challenging market conditions that have reduced the buying power of these corporate entities.

However, some prominent commentators are staying optimistic regarding the long-term path of the world’s second-largest cryptocurrency despite this institutional cooling.

One of them, Fundstrat’s Tom Lee, while at the Binance Blockchain Week in Dubai, forecasted a potential rise to $20,000 for ETH by 2026, tied to an expected boom in real-world asset tokenization. This outlook suggests that fundamental utility, rather than short-term treasury flows, may dictate the next major cycle.

Currently, the asset is trading around $3,130, reflecting a modest 3.3% gain over the past week but remaining down about 6% for the month.

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