Data shows that the market continues to support ETH, despite Bitcoin's deep correction to $115,000
After setting a yearly high at $3,850 on Binance, Ethereum (ETH) continues to show superior strength compared to Bitcoin (BTC) in the latest correction wave. While BTC has dropped to a new dip at $115,000, ETH remains stable trading above the critical support zone of $3,500, maintaining its price increase structure and potentially continuing towards the $4,000 mark in the short term.
On the 4-hour chart, ETH remains above the 50 EMA - an important indicator for medium-term growth. On the 1-hour timeframe, ETH remains above the 200 EMA, indicating that the upward trend is being preserved across short timeframes.
On the 1-hour chart, an inverse head and shoulders pattern may be forming - a technical signal typically indicating a potential price reversal. If ETH successfully breaks above the $3,750 resistance zone, which also coincides with the short-term downtrend line, this could trigger a new surge targeting the psychological $4,000 level.
Cryptocurrency analyst Byzantine General also expressed an optimistic view, suggesting that ETH may be preparing for "a new attack on recent highs", further reinforcing the current price appreciation prospects.
However, if ETH loses the critical $3,500 support, the price increase structure will be invalidated, opening the possibility of a deeper correction. In that scenario, the price could return to the "fair value gap" between $3,150 and $3,300 before seeking renewed buying pressure.
Will ETH retest the $3,100 support zone in the upcoming correction?
Ether (ETH) is demonstrating superior strength compared to the overall market, largely due to a strong accumulation wave from whales and large institutions. Since July 9th, 8 new whale wallets have accumulated a total of 540,460 ETH, with a total value of nearly $2 billion. On Thursday alone, 3 large wallets bought an additional 74,207 ETH (equivalent to $273 million), reflecting strong investor confidence in Ethereum's long-term potential.
Additionally, strategic accumulation activities from institutions have significantly increased in recent weeks. The total assets held by large corporations have nearly doubled, from 1.2 million ETH to 2.3 million ETH in just 4 weeks.
Notably, Bit Mine - Tom Lee's investment company - bought 266,119 ETH (valued around $970 million) last week, raising its total holdings to 566,776 ETH (estimated at $2.06 billion), thereby becoming the largest Ether storage organization currently.
However, a technical signal is suggesting short-term correction risks. The latest data shows ETH has 245,000 ETH placed as buy orders (bids) in the perpetual futures market, primarily concentrated in the price range from $3,000 to $3,400 - a record high volume of buy orders on the lower side.
Although this increased demand reflects strong buying interest, it also highlights a significant liquidity gap below the current price. Given the close correlation between spot and derivative order books, ETH could potentially reverse and sweep through this "bid zone" before continuing its price appreciation trend.
Therefore, a short-term decline to the $3,400 - or even $3,100 zone - remains possible, before ETH regains momentum and targets new highs.
This article does not contain investment advice or recommendations. All investment and trading actions involve risks, and readers should conduct their own research when making decisions.
