ETH is trading around $2,480–$2,520 after a sharp ~30% weekly surge from the $1,870–$1,920 consolidation zone.

The rally appears to have been driven primarily by a short liquidation cascade rather than pure spot demand. Aggregate short liquidations surged over 1,500% WoW, forcing a rapid repricing higher, while long liquidations remained relatively subdued.

Key signals:

Network activity reactivated: Base fees, total fees, and ETH burned increased sharply as price rallied, reversing months of fee compression.

Funding turned positive: Funding rates shifted into a modestly positive territory, while taker buy volume edged ahead.

Exchange deposits remain smaller: Average deposit size is ~40% below the 90-day baseline despite higher total inflows, suggesting supply is arriving in smaller tranches rather than large whale-sized deposits.

ETF flows remain supportive: Spot ETF inflows have remained strong, with weekly inflows approaching $700M, although some larger holders are beginning to take profits after the rapid move.

Structure: ETH has reclaimed the $2,500 psychological level, but daily RSI is deep in overbought territory at ~79–80. This increases the probability of a short-term cooldown or consolidation before another sustained move toward $2,750–$3,000.

Netflows remain choppy, pointing more toward venue rebalancing than clear directional distribution.

Bottom line: The liquidation cascade and renewed network activity strengthen the rally, but shrinking deposit sizes and overbought conditions suggest the easy upside may be fading.

Holding $2,400–$2,450 keeps the higher-timeframe structure constructive. A decisive daily close below this zone could trigger a deeper reset.

Written by theophiluspep