Vitalik Buterin's tweet promising to transform the Ethereum blockchain into a global computer caused the price of the largest altcoin to rise above the psychological threshold of $3,000. However, this rise is false, as indicated by technical and on-chain analysis.
The daily chart clearly shows a divergence between trading volumes and the growing trend. The breakout above $3,000 occurred due to a 'thin market' lacking liquidity during the New Year holidays, when the news was released.
Now, with major players returning to the market, ETH has two paths ahead:
- Reversal at current levels with the formation of a double top
- Rise to the line of the first 'shoulder' and form a 'head and shoulders' pattern.
- Both patterns indicate a reversal, which is confirmed by a significant influx of ETH to the Binance exchange wallet.
According to the latest data, the average net inflow of ETH reached 24,500 coins, the highest level since July. At the same time, the exchange supply ratio (ESR) jumped to 0.035, the highest level since September. Approximately 8.5 million ETH entered the exchange during December, significantly increasing the available trading liquidity.
