Ethereum (ETH), the world’s second largest cryptocurrency by market value, started to rise as the West Asian crisis eased.
Another factor supporting ETH’s optimism is the significant demand from whales as well as the huge increase in Open Interest (OI); This indicates that Futures demand for the asset is increasing.
At press time, ETH It was traded at $2,166 with an increase of 1.25% in the last 24 hours. Despite the recovery in price, the asset appears to have lower participation, which is reflected in its trading volume, which dropped over 33% to $18.53 billion.
Decreasing volume along with increasing price indicates that the current upward move may not be sustainable as investors and traders are hesitant to participate in the asset compared to the previous day.
Rising demand from Ethereum whales
Despite the low volume, crypto giants have shown great interest in the asset. On March 25, Ethereum whales added 142,773 ETH worth $308 million from major exchanges such as Binance, Bitget, and Kraken..
The only name that attracted attention in this accumulation was Bitmine, which added 67,111 ETH worth 145 million dollars.
Analysis tool CryptoQuant reveals similar data showing a massive decline in foreign exchange reserves.
A significant decrease of 842,604 ETH was recorded in total foreign exchange reserves last week, indicating that not only whales and institutions but also retail investors have accumulated.
This potential accumulation appears to be an early sign of recovery after the United States eases its pressure on West Asia through peace talks.
Retail interest in Ethereum increased
As derivatives analysis tool CoinGlass shared, long-term investors as well as intraday players appear to be following the same trend by placing strong bets on the long side.
As of press time, intraday traders are heavily positioned on the bottom side at $2,086.8 and on the top side at $2,183.4 (both close to liquidation levels).
At these levels, investors create long leveraged positions worth $887.04 million, while short leveraged positions of $255.29 million are on the opposite side and could be liquidated if the asset surpasses the $2,183.4 level.
In fact, Ethereum’s OI increased by 7.51% in the last 24 hours, reaching $30.83 billion; This indicates an increase in the notional value of ETH contracts due to increased leverage risk and new position formation.
Will ETH break its bullish chart?
On the four-hour chart, ETH is trending upward, forming an inverted head and shoulders pattern and appearing to be on the verge of a breakout.
Currently, ETH seems to be facing resistance near the neckline near $2,180 that it has faced over the last 10 candles.
If ETH’s upward move continues and it breaks the key resistance level at $2,180 and closes a four-hour candle above it, it could potentially see an impressive price increase of over 8% and reach the $2,351 level in the coming days.
However, this bullish thesis is valid only if the price rises above the $2,180 level; otherwise it will be invalid.
As of now, the Relative Strength Index (RSI) stands at 55.89, indicating that the momentum is gradually shifting towards the bullish side, with the buying pressure slightly outweighing the selling pressure.
Final Summary
- Ethereum whales added 142,773 ETH worth $308 million in the last 24 hours.
- The four-hour chart shows that ETH is poised for a 7% upside only if it clears the $2,180 level.
