Despite liquidity inflows, ETH risks breaking support unless buyer momentum returns quickly.
Ethereum [ETH] has barely budged in the last 24 hours, despite strong capital inflows.
At press time, ETH traded flat, posting a 0.00% daily change.
But AMBCrypto’s analysis found that underneath the calm, liquidity is shifting, and market sentiment is getting heavier by the hour.
Analysis shows that in the past 24 hours, ETH recorded the most positive Bridged Netflow, suggesting more liquidity inflow.
Bridged Netflow measures how much liquidity moved between different assets. In the case of ETH, the majority of the liquidity inflow came from Base.
However, ETH barely moved. That contradiction is telling.
When large inflows don’t trigger upward momentum, it’s often because selling pressure is acting as a counterweight. And right now, that weight appears to be growing.
Press-time analysis of ETH’s price movement on the chart shows that the altcoin could see a significant price decline in the coming trading sessions.
ETH has traded in a tight consolidation range since mid-May. But price is now hugging the support line.
This support level has historically pushed price to the upside; however, in this case, the opposite appears true, particularly as bearish pressure in the market continues to mount notably.
According to DeFiLlama, Ethereum’s Total Value Locked stood at $89.13 billion on the 11th of June.
But by press time, TVL had dropped to $84.53 billion, marking a $4.6 billion exit in under 48 hours.
This significant drop attests to the ongoing liquidity outflow in the market, reflecting weakening market sentiment and raising the possibility that ETH could lose significant value.
A broader view of the derivatives market adds weight to the bearish setup.
ETH futures analysis at the time showed that Open Interest had dropped sharply, from $41.43 billion to $34.66 billion.
That $6.77 billion drop shows traders are reducing exposure or getting liquidated.
At the same time, long liquidations in the market accounted for $29.56 million, with total liquidations at $13.30 million.
