Ether (ETH) dropped to $2,800 due to Bank of Japan rate hike fears, struggling to hold $3,000. Onchain data and technicals show mixed signals on Ether’s ability to reverse the downtrend. Bulls need a sustained break above $3,200 for a strong recovery, while breaching $2,800 could invalidate the macro bullish trend.

Ether’s price faces resistance at $3,000, a key level that flipped from support to resistance. The 50-week and 100-week moving averages converge at this level, reinforcing its significance. Breaking above $3,000 could lead to a rally back into the mid $3,000s throughout December.

The Glassnode cost basis distribution heatmap shows resistance between $3,150 and $3,230, where 5.1 million ETH was acquired. On the downside, a key support area around $2,800 with 3.6 million ETH purchased is crucial for bulls to defend. Breaking below this level could lead to further downside.

Inflows into US-based Ethereum ETFs reached $312 million, signaling a potential end to the institutional crypto sell-off. Global Ethereum exchange-traded products recorded $309.1 million in inflows. However, Ether’s ability to stay above $2,800 and reclaim $3,000 may be challenged by declining network demand and fees.

Ethereum’s MVRV Z-Score, a metric for market tops and bottoms, is nearing the accumulation zone, suggesting a local bottom may be forming. Similar levels in the past coincided with market bottoms and preceded significant rallies. Ethereum valuation models indicate the altcoin is undervalued, with projections above $4,000.

Read more at Cointelegraph: Bear Trap or $4K? Ethereum Data Mixed on ETH Price Recovery