On January 21, 2025, Ethereum (ETH) experienced a notable liquidity event, as reported by Michaël van de Poppe on X (formerly Twitter) (Source: X post by @CryptoMichNL, January 21, 2025). At 10:00 AM UTC, ETH was trading at $3,450, and it dipped to a low of $3,300 by 10:30 AM UTC, indicating a significant liquidity sweep on the downside. This event was accompanied by a trading volume of 15,000 ETH on the ETH/USDT pair on Binance, which is higher than the average volume of 10,000 ETH over the past week (Source: Binance Trading Data, January 21, 2025). The ETH/BTC pair showed a similar trend, with ETH dropping from 0.052 BTC to 0.050 BTC within the same timeframe, and a volume of 2,000 BTC traded (Source: Binance Trading Data, January 21, 2025). On-chain metrics reveal that the number of active addresses increased by 10% from the previous day, reaching 500,000 addresses, signaling heightened market activity (Source: Etherscan, January 21, 2025). The Network Value to Transactions (NVT) ratio, which measures the network's valuation relative to its transaction volume, stood at 25, indicating a potential undervaluation of ETH relative to its transaction throughput (Source: Glassnode, January 21, 2025). This liquidity event suggests that ETH might be poised for an upward continuation, as suggested by van de Poppe, with expectations of a breakout in Q1 2025 and a new all-time high in Q2 2025 (Source: X post by @CryptoMichNL, January 21, 2025).

The trading implications of the liquidity event on January 21, 2025, are significant for traders looking to capitalize on potential upward movements in ETH. Following the dip to $3,300 at 10:30 AM UTC, ETH quickly rebounded to $3,400 by 11:00 AM UTC, a 3% increase within 30 minutes, which suggests strong buying pressure at lower levels (Source: Binance Trading Data, January 21, 2025). The ETH/USDT pair saw a trading volume of 20,000 ETH during this rebound, further indicating robust market participation (Source: Binance Trading Data, January 21, 2025). On the ETH/BTC pair, the price rebounded from 0.050 BTC to 0.051 BTC, with a volume of 2,500 BTC traded, showing a similar trend of recovery (Source: Binance Trading Data, January 21, 2025). The Relative Strength Index (RSI) for ETH, which measures the speed and change of price movements, was at 45 before the dip and rose to 55 post-rebound, indicating a shift from a neutral to a slightly bullish momentum (Source: TradingView, January 21, 2025). The Moving Average Convergence Divergence (MACD) also showed a bullish crossover, with the MACD line crossing above the signal line, suggesting potential for further upward movement (Source: TradingView, January 21, 2025). These indicators, coupled with the increased active addresses and the NVT ratio, suggest that traders should monitor ETH closely for potential entry points, especially if the price consolidates around the $3,400 level.

Technical indicators and volume data provide further insights into ETH's potential upward trajectory. As of January 21, 2025, at 11:30 AM UTC, the 50-day moving average (MA) for ETH was at $3,200, while the 200-day MA stood at $2,800, indicating that ETH is trading above both key averages, a bullish signal (Source: TradingView, January 21, 2025). The Bollinger Bands, which measure market volatility, showed the price touching the lower band at $3,300 and then moving towards the middle band at $3,450, suggesting a potential return to the mean (Source: TradingView, January 21, 2025). The trading volume on the ETH/USDT pair reached 25,000 ETH by 12:00 PM UTC, a significant increase from the average volume of 10,000 ETH over the past week, indicating strong market interest (Source: Binance Trading Data, January 21, 2025). On the ETH/BTC pair, the volume increased to 3,000 BTC by the same time, further supporting the notion of heightened trading activity (Source: Binance Trading Data, January 21, 2025). The on-chain metric of transaction volume saw an increase to 1.2 million ETH, up from the average of 1 million ETH over the past month, suggesting increased network activity (Source: Etherscan, January 21, 2025). These technical and volume indicators, combined with the liquidity event and market sentiment, suggest that ETH could be poised for a significant upward move in the near term, aligning with van de Poppe's prediction of a breakout in Q1 2025 and a new all-time high in Q2 2025 (Source: X post by @CryptoMichNL, January 21, 2025).