Ethereum Trapped in Range as Buyers Weigh Distribution at Key Swing Level

Ethereum has experienced a solidly bullish August, with its monthly low and high at $1,820 and $2,567, respectively, marking a 41% rally. This gain was accompanied by positive flows into Spot Ethereum ETFs, with Farside Investors' data showing a net flow of $1.736 billion since the 12th of August. However, the bullish momentum has stalled in recent weeks, with Ethereum forming a range between $2,380 and $2,530 on its 4-hour chart.

There is a possibility that ETH is facing distribution at a key swing level, as the swing high at $2,466 from April is within this range. The 3-month taker CVD measured an increase in aggressive buying volume in August, and currently, the Spot taker CVD reflects taker-buy-dominant conditions, indicating notable buying pressure.

The derivatives markets also show a significant uptick in buying pressure, with the taker buy/sell ratio climbing to 1.11. Readings above 1 indicate that aggressive (taker) buy orders outweighed sellers and signal buyer dominance. If this trend continues, it could help drive Ethereum prices beyond the pivotal $2.5k resistance area.