Ethereum Price Faces Bearish Short-Term Outlook Despite East Asian Demand

Ethereum [ETH] price prediction for the short term is bearish, as indicated by several recent analyses. The cryptocurrency has been facing resistance at the $2.8k level, with selling pressure in spot ETFs last week attributed to profit-taking. Despite increased demand from East Asian crypto markets, as suggested by the rising Korea Premium Index, the overall outlook remains bearish.

The 12-hour chart shows that the selling pressure over the past month has taken the 12-hour On-Balance Volume (OBV) to a multi-month low. However, this finding is not particularly alarming, as the OBV's trends shift across timeframes, and the 1-day and 3-day OBV remained flat since December instead of trending downward. The price action structure is firmly bearish, but the Relative Strength Index (RSI) is just below neutral 50. The bulls lack the strength to reclaim the significant higher timeframe horizontal resistance at $2.8k.

The 4-hour chart reinforces the 12-hour chart's findings, showing insubstantial buying pressure in recent weeks. Although the RSI briefly poked its head above 50, the bearish structure remained intact. While ETH has formed higher lows over the past week, this does not mean much without a breach of the recent lower high at $2,880. The lack of buying and momentum, coupled with slow progress higher, sets the stage for a liquidity hunt.

The Ethereum liquidation heatmap of the past month shows that the $2.9k and $2.5k levels are the closest magnetic zones of noticeable size. The former is closer to the current price and is likely to pull prices to it soon. This coincides with the higher timeframe resistance zone at $2,800-$2,850 and the lower timeframe $2,880 resistance. A price move to $2.9k followed by a retracement to $2.5k or $2.6k is anticipated over the coming days.