Ethereum Faces Correction as Demand Remains Elusive Amid Binance Order Flow Insights

Ethereum is attempting to maintain stability above the $3,100 level following difficulties in overcoming the $3,400 resistance. Despite efforts from bulls to uphold critical support, the price remains uncertain, and sellers are still active during rallies. A recent report from Arab Chain indicates that Ethereum is experiencing a sensitive period, as demand appears to be insufficient at this time.

Key Takeaways

Current Price Range: Ethereum is trading near $3,200, with a key support level at $3,100.
Market Sentiment: Accumulated Order Flow (CVD) indicates net selling pressure, signaling weak demand.
Price Action Correlation: There is a 30-day correlation of 0.62 between ETH price and CVD, showing partial alignment with volume behavior.
Resistance Levels: The $3,300-$3,400 zone remains a significant resistance, with Ethereum struggling to reclaim this area.
Potential for Recovery: If Ethereum holds above $3,000, it may eventually set the stage for upward movement once liquidity improves.

Ethereum's Current State

Ethereum is working to stay above the $3,100 mark after encountering resistance at $3,400. The wider crypto market has been struggling to regain momentum. Although recent sessions saw bulls defending important support levels, the price movement remains delicate, reacting strongly to selling pressure. Traders are closely monitoring whether this pullback develops into a more substantial correction or acts merely as a short-term reset before a potential rebound.

According to a report from Arab Chain, Binance data is suggesting a cautious phase for Ethereum early in 2026. Presently, ETH trades around $3,200, yet market flow conditions appear skewed to the downside.

The Accumulated Order Flow (CVD) currently stands at approximately -3,676, indicating that there is more selling pressure in the short term than buying interest, even while prices attempt to hold steady.

This disconnect between the stabilization of prices and the prevailing selling flow signifies that while the market is not in freefall, it is not drawing strong buying demand either. As Ethereum maintains support, the upcoming challenge will be whether buyers can push ETH back to $3,300 and reattempt breaching the $3,400 resistance.

Market Dynamics for Ethereum

Arab Chain mentions that despite the negative CVD for Ethereum, the connection between price action and liquidity flows is still apparent. With a 30-day correlation value of 0.62, the ETH price shows a partial relationship with volume trends, indicating that, although selling is currently dominant, buy-side flows are still relevant.

In broader terms, Ethereum’s recent price drop reflects a correction following previous gains. This scenario often leads short-term investors to take profits while larger entities begin to adjust their portfolios gradually. It is typical for the market to undergo sideways movements as buyers and sellers test liquidity during these phases.

A critical detail is that the negative CVD suggests demand has not yet gained the strength needed to shift the flow structure in the short term. However, Ethereum's ability to remain above $3,000 implies an underlying support base is limiting the potential for sharper downward movements.

This contradiction—weak volume momentum paired with stable price behavior—often precedes consolidation phases, which could act as a foundation for significant upward movements later when liquidity conditions improve.

The Fight for $3,100

Ethereum is striving to hold its position above the $3,100 level after a notable rejection from the $3,400 area, currently trading around $3,111. The market appears to be still recuperating from a longer-term downtrend that began after the November breakdown, yet the overall structure feels fragile as sellers continually resist any attempts to rise.

ETH testing key MA | Source: ETHUSDT chart on TradingView

From a technical stance, the $3,300 to $3,400 range is recognized as a primary resistance cluster. This level has seen multiple rejections, affirming its status as a major distribution zone. Concurrently, Ethereum maintains a position above its short-term moving average, approximating $3,050 to $3,100, indicating ongoing buying activity to defend this range.

Nevertheless, Ethereum remains constrained below mid-term moving averages that are in a downward trajectory, functioning as dynamic resistance. This situation sets the market in a “recovery within a downtrend” condition unless bulls can convert those levels into support. Volume during the recovery phase has been relatively low, showing that the move lacks strong follow-through.

Currently, Ethereum appears to be in a consolidation phase, with $3,000 serving as the crucial support floor and $3,400 marking the key level for breaking out to shift prevailing market sentiment.

Featured image from ChatGPT, chart from TradingView.com