Is Ethereum about to explode? Don't miss out on this crucial price point.

At the time of writing, Ethereum (ETH) appears to be accumulating in an important price zone, fluctuating between two strong supply zones at 1,540 USD and 1,630 USD. On-chain data shows that over 7.9 million ETH are currently held by addresses that purchased in this price zone – a fierce "battlefield" between the bulls and the bears.

In the past 24 hours, the price volatility of ETH has been quite low, with a slight increase of 1%. This narrow trading range suggests that a breakout in either direction could shape the next trend.

The IOMAP chart of Ethereum records a strong support zone from 1,513–1,585 USD, where approximately 6.6 million ETH are being held in a "profitable" state. Conversely, selling pressure may form in the zone of 1,585–1,630 USD, as there are up to 3.37 million addresses holding 7.91 million ETH at a loss.

These "price clusters" are where most investors concentrate, creating strong support and resistance zones that ETH needs to overcome in order to experience significant volatility.

Source: IntoTheBlock## Will the downtrend continue as ETH tests the middle zone of the price channel?

Upon closer observation, we can see that ETH is still trading within a broad downtrend channel, extending from January 2025 to the present. Each time it approaches the upper resistance zone, the price is rejected, indicating that selling pressure continues to outweigh buying pressure.

Recently, the price action has been continuously fluctuating around the midpoint of the channel, reflecting hesitation from both the bulls and the bears. Unless ETH breaks through the 1,630 USD mark, this bearish pattern will remain intact. The lower boundary of the price channel is currently close to the 1,475 USD support zone – if the bearish trend is maintained, this could be the next target for the bears.

In summary, the current price structure further emphasizes the key role of the resistance level at 1,630 USD – a potential turning point that determines the next direction of ETH.

Source: TradingView## Are whales and leveraged traders preparing for a breakout?

The activity of whales is showing a contrasting picture. In the past 7 days, the net flow from large holders increased by 10.76% – a sign of light accumulation. However, over the past 30 days, this figure has sharply decreased by 46.7%, reflecting a strong recent allocation process. On the 90-day time frame, the cash flow is still being maintained in positive territory at +1.77%.

Source: IntoTheBlockAt the same time, the estimated leverage ratio has increased to 0.7009, up 1.01% in the past 24 hours. This indicates that the interest of speculators is rising, with more leveraged positions being opened on exchanges. Therefore, if ETH breaks out of the current accumulation zone, a strong volatility may occur due to the liquidation effect.

Is ETH gradually losing its deflationary characteristic?

The rate of ETH burned from transaction fees is significantly decreasing. The average 7-day burn rate has dropped to just 27.08%, considerably lower than the 90-day average of 42.38%. This decline indicates that the level of activity on the Ethereum network is weakening, thereby reducing the deflationary pressure on ETH.

This means that without a significant increase in on-chain activity, the upward trend will be difficult to maintain and will lack the momentum to break out.

Source: IntoTheBlockETH is currently at a "life or death" threshold. Price action, on-chain data clusters, and whale activity all indicate that a significant breakout may be imminent. However, the bearish pattern, weakening burn rate, and high leverage are warning signs that the bulls need to act quickly if they do not want to witness a deeper correction.

Breaking through the 1,630 USD mark could pave the way to the 1,860 USD zone and even higher. However, if ETH loses the support level of 1,540 USD, it could quickly plunge down to a price level of 1,475 USD.

You can check the price of ETH here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making decisions. We are not responsible for your investment decisions.

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