Ethereum (ETH) has seen a notable increase in the number of addresses holding 10,000 or more ETH, indicating a significant spike in buying pressure. As the ETH price stabilizes around $3,700, this surge in whale addresses suggests a potential for a substantial price rally if the price holds above $3,650, with bulls eyeing a shot above $4,000.
Surge in Ethereum Whale Addresses
Crypto analyst Ali Martinez has observed a 3% rise in the number of Ethereum addresses holding 10,000 or more ETH over the past three weeks. This increase signals growing buying pressure for Ethereum. On-chain data from Santiment supports this observation, showing heightened enthusiasm for Ethereum following the SEC’s approval of Ethereum ETFs. Although initial excitement has stabilized, this balanced social sentiment is seen as ideal before the trading of these new financial products begins.
ETH Price Action Ahead
Market analysts are drawing parallels between Ethereum's current price action and its performance in 2021, when it experienced an 83% rally. Analyst Caled Frazen has highlighted similarities in chart patterns, cautioning that while history may not repeat exactly, it often rhymes. In 2021, the "red zone" was a critical level for Ethereum. Despite not being flawless support, it was significant enough to trigger an 83% rally within 50 days following a failed breakdown.
According to Coinglass data, Ethereum's open interest declined from $16.97 billion on June 6 to $16.35 billion by June 9, a decrease of $620 million. Despite a 7.38% dip in ETH's price from its weekly peak on June 6, the reduction in open interest was relatively moderate at 3.65%, suggesting potential bullish recovery signals.
Potential Price Movements
If Ethereum ($ETH) breaches the support threshold at $3,650, a downturn toward $3,152, marking the previous Fair Value Gap (FVG), is possible. Conversely, if Ethereum holds steady at the $3,650 mark, it could signal an upward trajectory towards $4,000. Surpassing the $4,000 resistance could then lead to a robust bullish surge, potentially targeting the $6,000-$7,000 range.
Conclusion
The recent increase in Ethereum whale addresses and the stabilizing price action suggest strong buying pressure and potential for significant price gains. While historical patterns provide some guidance, the market's next moves will depend on Ethereum's ability to maintain key support levels and break through resistance barriers. Investors will be watching closely to see if Ethereum can replicate past performance and achieve new highs.
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