The Ethereum price has successfully held above the $2,600 zone, with a focus now shifting towards the $3,400 target after breaking through the liquidity area and consolidating above it. This indicates a bullish chart setup as $2,600 has been reclaimed, the breakout remains intact, and the next major target highlighted by analysis is at $3,400.
ETH’s move above $2,600 is significant as the price is consolidating above this level rather than immediately retracting the breakout. If this level continues to hold, the $3,400 liquidity target remains in focus.
However, on-chain numbers reveal a less comfortable detail. Ethereum’s recovery has occurred amidst Binance futures activity dominating over spot trading. Despite ETH climbing to around $2,700 by October 1, the spot to futures ratio only edged up to 8%, indicating that spot volume remains a fraction of futures volume on Binance.
Past volume ratios offer a complicated signal, with the current 8% ratio looking modest compared to previous peaks. This divergence between spot and futures activity is hard to ignore, raising questions about the sustainability of the breakout while futures continue to dominate trading on Binance.
In conclusion, the Ethereum price continues to hold above $2,600 with $3,400 as the target. The key concern lies in whether the breakout can be sustained while futures activity remains dominant on Binance’s trading platform.
