Ethereum (ETH) Liquidity is above $2500: Will ETH long positions grab it?

Gate News, according to CoinTelegraph, ETH long positions are targeting Liquidity pockets near $2500, supported by strong technical levels such as the dragonfly doji and key support zone Rebound. With over 90% of BTC supply in profit and ETH supply lagging, Swissblock data suggests a potential 'catch-up' phase, aligning with previous Bull Market patterns. In June, inflows into Spot ETH ETF surged by 68%, indicating a growing institutional interest in ETH.

The article states that ETH is undergoing a significant recovery, with its price surging to the $2500 mark on Monday. The liquidation heat map for the past two weeks highlights this bullish trend, revealing ETH's aggressive price movements aiming for a liquidity-rich area above $2500. These areas serve as regions where market makers can set stop-loss orders, acting like magnets to drive prices up in the face of potential short squeezes.

(Source: Coinglass)

From a technical perspective, ETH has recently tested the multi-month support level between $2100 and $2200, which has held strong, indicating strong buyer interest. The three-day chart closed above $2400 and formed a dragonfly doji, indicating a possible reversal after the low point of the range. This candlestick pattern, characterized by long shadows and a bullish close, reflects early selling pressure followed by buyers regaining control.

(Source: Trading View)

The price rise since May also marks the highest level of trading volume participation since July to August 2022 (during the last bear market), indicating renewed interest from retail and institutional investors.

The liquidation heat map supports this view, showing that ETH continues to form higher lows above the main liquidation cluster, with the path of least resistance pointing upward. Market makers may play a key role in this rebound driven by Liquidity. As ETH approaches $2500, the combination of technical strength and dynamic liquidity implies a potential breakthrough.

Onchain analyst Amr Taha also emphasized that more than 61,000 ETH were withdrawn from the exchange on Monday, which is a strong bullish signal, indicating that traders are moving assets out of the exchange, possibly shifting from short-term speculation to a long-term holding strategy.

ETHcoin may "catch up" BTC

According to the latest data from Swissblock, as capital rotation shifts from BTC, the price of ETHcoin may rise significantly. X's analysis has identified an accumulation phase in 'Zone5', historical data shows that ETH has significant upside potential in this phase.

The chart highlights 5 key green areas: these periods have consistent fundamentals, a surge in profit supply, and capital rotation, similar to 2017 and 2021. Currently, over 90% of BTC supply is in a profitable state, indicating limited short-term upside, while the profit realization rate of ETH is less than 80%.

This lag is a repeated signal of ETH catching up, which is detailed in the profit supply indicators of BTC and ETH, indicating that as BTC reaches its peak, capital may be rotating.

(Source: X, Swissblock)

The analysis emphasizes that Zone5 reflects ETH's past excellent performance, with the ETH/BTC ratio approaching multi-year lows, signaling undervaluation. Current data highlights a common pattern: historical capital inflows into ETH, laying the foundation for the Rebound of altcoins.

The recent net inflows of Spot ETF further confirm this change. In May, the net inflow of Spot BTC ETF was $5.23 billion, which dropped to $2.64 billion in June, while the net inflow of Spot Ethereum ETF surged from $564 million to $950 million. This led to a change in the relative proportions: ETH ETF net inflow increased by 68.4% month-on-month, while BTC net inflow decreased by 49.5%.

The 118% rise in ETH also highlights the possibility of institutional capital rotation accelerating. Therefore, institutional investors may shift towards ETH, thereby strengthening the bullish prospects of Swissblock.