Ethereum’s liquidity inflow hits $128 mln – Potential for future upside?

• Ethereum rose 2.32% as spot selling cooled and liquidity returned.
• Open Interest hit $21.5B, with long traders paying positive Funding Rates.

Ethereum [ETH] recorded a modest 2.32% price gain in the past 24 hours. This shift in sentiment comes as selling pressure eases and liquidity begins to enter the market.

Analysis suggests that ETH could be in a preparatory phase for a potential rally to the upside.

Spot volume cools—How good is this for ETH?

ETH’s Spot Trading Volume has begun to decline, continuing its downward trend.

The chart displays this through bubble sizes, with larger bubbles indicating higher volume and smaller bubbles indicating lower volume.

Source: CryptoQuant

In fact, lower volume during a correction phase often reflects cooling sell-side momentum. This suggests that continued selling interest from traders is gradually fading, leading to reduced volatility.

Spot market activity, however, shows that some cohorts are still selling.

At the time of writing, these traders sold $32 million worth of ETH in the past 24 hours, a considerable decline from the 102,000 ETH (worth $190 million) sold on the 6th of May.

Source: CoinGlass

On the same day, large investors had sold 105,000 ETH worth $195 million, reflecting a lack of confidence in ETH’s near-term potential.

As selling pressure cools, liquidity inflow has started to rise, as an early sign of a potential rally.

Liquidity inflow sees surge

In the past 24 hours, Ethereum recorded the highest on-chain inflow among major assets—$128.4 million in Chain Netflow.

Chain Netflow measures the amount of liquidity added to a blockchain through its native token.

Source: Artemis

A significant netflow like this implies that ETH purchases by buyers exceeded the amount sold by sellers. This added liquidity suggests increased on-chain activity, particularly on Ethereum-based protocols.

Such activity typically has a net positive effect on price. If momentum continues, other market participants may follow.

Futures traders stay ahead of the movement

In the Futures market, traders are already positioning for an ETH rally. This is evident in the amount of unsettled contracts now held by long traders, who are paying a premium fee.

Open Interest, which measures the value of unsettled positions, was $21.5 billion at press time.

Source: CoinGlass

The Funding Rate at 0.0048% confirmed long dominance—buyers were paying a premium to hold their positions.

Having said that, such conviction from derivative traders often precedes spot rallies. If long positions and volume rise further, ETH may break higher in the days ahead.