Important takeouts:
Ether Bulls targets liquidity pockets that are close to $2,500. This is supported by powerful technologies such as Dragon Friedge and Key Support Zone Rebound.
With over 90% of BTC supply lag behind profits and ETH, SwissBlock’s data suggests that a “catch-up” period may be ongoing, reflecting patterns from previous bull cycles.
In June, inflows into spot ETH ETFs skyrocketed by 68%, indicating a growing institutional appetite for ether.
Ether (ETH) has experienced a significant recovery, with its price rising towards $2,500 on Monday. The two-week liquidation heatmap highlights this bullish trend and reveals aggressive price action as ETH targets liquidity-rich zones above $2,500. These zones allow market makers to hunt stop loss orders, act as magnets, and raise prices within potential short squeezes.
From a technical standpoint, ETH recently tested its one-day support range, which is high between $2,100 and $2,200. The three-day chart was closed at Dragon Friedze for over $2,400. This is a candlestick pattern showing potential inversions after low range. This candlestick pattern is marked with long cores and bullish closures, reflecting that sellers are pushing ahead early, but buyers regain control.
Also, the price rise since then was the highest volume engagement from July to August 2022, the last time the bare market, suggesting new retail and institutional interest.
The clearing heatmap supports this outlook, indicating that ETH consistently forms a higher lower value than the main clearing clusters, with the path with the least resistance heading upwards. Market makers can play a pivotal role in this liquidity-driven gathering. As ETH approaches $2,500, the combination of technical strength and liquidity dynamics suggests a potential breakout.
Onchain analyst Amr Taha also highlighted that Binance had over 61,000 ETH ETH retracted on Monday.
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Ether can play “catch-up” on Bitcoin
Recent data from SwissBlock shows that ether could surge significantly as the capital rotation pattern shifts from Bitcoin. The X analysis identifies the “zone 5” accumulation phase. Here, historical data suggests an important advantage of ETH.
The chart highlights five important green zones. These consistent foundation periods, surges in profits, capital revolving mirror cycles like 2017 and 2021. Currently, more than 90% of BTC supply is profitable, with ETH realising profits of less than 80%, while short-term gains are limited. This lag, a recurring signal to ETH catch-up play, is explained in detail throughout the indicators of BTC and ETH supply profit, suggesting that capital may turn as a peak in BTC.
The analysis mirrored past setups on ETH overhang, highlighting that the ETH/BTC ratio approached a multiyear low, an underestimation signal. Current data highlights familiar patterns of capital that historically flow into ETH, setting the stage for the Altcoin rally.
Recent Spot ETF Netflows shows this shift further. In May, the Spot Bitcoin ETF was $5.23 billion, down to $2.644 billion in June, while the Spot Ethereum ETF surged from $564 million to $950 million. This results in a 68.4% increase in ETH ETF inflows per month and a 49.5% decrease in BTC inflows, resulting in a relative ratio shift.
This 118% swing in favour of ETH also highlights the acceleration of possible institutional capital rotations. Thus, institutional investors were able to swing towards ETH and strengthen the bullish outlook for the Swiss bloc.
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This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
