Ethereum held above $3,150 on Dec. 5 as traders debated whether the recovery marks the start of a sustained rebound or another temporary bounce in a months-long downtrend. Recent data showed erratic buying pressure returning to the market, though analysts said the demand lacks consistency needed to confirm a trend reversal.
What Happened: Buying Pressure Returns
CryptoQuant analyzed Binance trading data and found the Cumulative Volume Delta (CVD) turned positive in recent days as Ethereum attempted to stabilize above $3,100.
The CVD metric tracks real-time buying and selling pressure by measuring the difference between market buy orders and sell orders. Heightened CVD volatility over the past several weeks reflected rapid shifts in trader behavior, with sporadic bursts of demand appearing after the asset declined from its August peak.
The report noted that while buying activity has returned, the spikes remain irregular and lack sustained strength.
Sharp pullbacks within the CVD data showed the market remains locked in what analysts described as a tug-of-war between buyers and sellers. The 30-day correlation between price and CVD held steady at around 0.6 despite lower price levels, indicating that liquidity flows continue to influence Ethereum's price direction.
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Why It Matters: Technical Battle
The positive CVD reading suggests fresh liquidity entered through short-term buy orders, with some traders accumulating during dips.
However, Arab Chain stressed in its report that without a more sustained accumulation phase and reduced short-term selling, Ethereum may struggle to generate decisive upward movement. The relatively high correlation reading shows traders are actively responding to market conditions, though buying pressure appears irregular.
Ethereum's latest price action showed the asset climbing back above $3,150 after finding support slightly above $2,700, where buyers stepped in with increased volume.
The price now faces resistance at the 100-day simple moving average, which previously acted as support before flipping into a barrier. Reclaiming this level would represent an important step toward restoring momentum. Above the 100-day SMA, Ethereum faces another obstacle at the 50-day SMA, which continues to slope downward and reflects ongoing medium-term selling pressure. Volume remains inconsistent, indicating hesitation among market participants. The next resistance zone sits around $3,300 to $3,350, aligned with previous breakdown levels.
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