Ethereum Mega-Whale Addresses Increase in Three Weeks, 83% Possibility of ETH Price Increase
After facing some selling pressure last week, Ethereum (ETH) price seems to be stabilizing around $3,700. On the other hand, Ethereum on-chain indicators continue to show strength, indicating upward buying pressure.
Increase in Ethereum Whale Addresses
Crypto analyst Ali Martinez highlighted that there has been a significant increase in the number of Ethereum addresses holding 10,000 or more ETH, with this number increasing by 3% in the last three weeks. This increase marks a notable increase in buying pressure for Ethereum.
Courtesy: Ali Martinez
Santiment’s on-chain data reveals increased interest in Ethereum following the SEC’s approval of Ethereum ETFs. Despite this initial excitement, social sentiment has now stabilized, which is considered an ideal situation before the start of trading of these new Ethereum financial products.
ETH Price Movement Ahead
On the other hand, some market analysts believe that the ETH price formed chart patterns similar to those in 2021, followed by a staggering 83% increase. In a recent analysis, renowned analyst Caled Frazen noted striking similarities between Ethereum’s current price action and its performance in 2021.
While Frazen cautions against expecting exact repetition of historical patterns (“history rhymes, but does not repeat”), he emphasizes the importance of observed parallels. Frazen noted that the “red zone” serves as a very important level in the 2021 cycle. While it wasn’t a perfect support, it proved important enough. After a failed crash, Ethereum witnessed a remarkable rise of +83% in 50 days.
Courtesy: Caleb Franzen
According to the Coinglass chart shown above, Ethereum (ETH) open interest decreased from $16.97 billion recorded on June 6 to $16.35 billion as of the last update on June 9, indicating a decrease of $620 million.
Although the ETH price experienced a 7.38% decline from its weekly peak on June 6, the decline in open interest was relatively modest, shrinking by only 3.65%; this was almost half the price drop.
A slowdown in open interest discounting compared to a price decline during a market downturn can potentially be interpreted as a bullish signal for two important reasons.
Courtesy: Coinglass
If Ethereum ($ETH) breaks the $3650 support threshold, there is a possibility of a decline towards $3152, which points to the previous Fair Value Gap (FVG).
If Ethereum manages to hold steady at $3650, it could signal a potential rise towards $4000. Moreover, breaking the $4000 resistance barrier could start a strong bullish wave targeting the $6000-7000 range.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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