Ethereum Buyers Defend Dip, But Bearish Signal Emerges

Ethereum's recent price action suggests that investors are willing to buy the dip. The cryptocurrency rose above $2,700 on Tuesday after falling below $2,400 last week due to concerns surrounding the Clarity Act and a Federal Reserve rate hike.

The rebound is attributed to spot Ether ETF inflows, which improved at the end of last week with $143.8 million in net inflows on Friday and continued with $147 million on Monday.

However, exchange flows tell a different story as deposits to exchanges have exceeded withdrawals over the past few days, indicating potential selling pressure.

The rally also triggered substantial liquidations, with CoinGlass reporting $181.02 million in ETH liquidations over the past 24 hours, including roughly $143.20 million in short positions.