Ethereum has recently surged past a significant price barrier, reaching beyond the $2,600 resistance level which has been vigorously upheld by sellers since mid-January. This advance has led to a notable increase in market engagement, as reflected by the growth in open interest for the cryptocurrency. Market analysis by Santiment has shown not only a rise in open interest for Ethereum but also for Bitcoin, indicating heightened activity in the crypto space.
Market Indicators Turn Bullish for Ethereum
Open interest in Ethereum, having peaked at $5.4 billion in March 2022, has maintained an upward trajectory according to recent reports. Additionally, Ethereum’s positive funding rate over the past three months has hinted at a predominant interest in long positions. Despite these bullish signals, an uptick in Ethereum’s exchange supply metric hints at a possible increase in sell-offs which could threaten the uptrend.
Since October, Ethereum’s value has consistently climbed, breaking past the $2,600 margin. This rise is backed by a steady growth in open interest over the last couple of months, indicating solid confidence in the market.
Whale Movements and Market Confidence
Contrasting the overall market confidence, supply distribution data reveals that holders of 0 to 10 million Ethereum have been offloading their holdings over the past quarter. Despite an initial uptick in whale activity in January, this reversed shortly after. The growing number of addresses with 10 million or more ETH suggests a concentration of wealth and a potential decrease in available supply.
Overall, Ethereum traders have been observed to slowly reduce their positions, while significant holders continue to accumulate. Despite these mixed signals, industry experts point to other on-chain metrics that still support a bullish outlook for Ethereum’s market movements.