Will Whales Trigger an Ethereum Explosion ?
After weeks of decline, the price of Ethereum has experienced a significant increase, allowing it to regain some of its dominance in the market. The cryptocurrency market started to bounce back following remarks by US Treasury Secretary Scott Bessent, hinting that the ongoing trade tensions between the US and China may not last much longer.
As ETH is making a strong recovery, whales are becoming more active, which could lead to larger price fluctuations in the days to come.
Indeed, Ethereum has seen a sharp increase in the past few hours, rising by over 10% in just 24 hours. This sudden surge has also been accompanied by a significant rise in several on-chain indicators.
According to Coinglass data, around $127 million of Ethereum positions were liquidated in the past 24 hours. Out of this amount, buyers lost around $34.2 million, while sellers were hit harder, with $92.8 million of short positions closed.
This price surge follows comments from former President Trump, stating that US tariffs on Chinese goods “will significantly decrease,” and Treasury Secretary Scott Bessent calling the ongoing trade dispute between the US and China “unsustainable,” hinting at a potential resolution.
This bullish trend has also impacted the Ethereum derivatives market. Open interest (the total value of outstanding derivative contracts) has increased by 12%, reaching over $21.5 billion. This signals growing investor interest and adds hope to the recovery rally.
What’s Ahead for ETH ?
Ether (ETH) has rebounded after dropping to around $1,500, with sellers struggling to push it lower. Buyers have stepped in and pushed the price above certain key short-term resistance levels.
Currently, ETH aims to hold above the $1,650 mark. It is currently trading around $1,750, with a 2% loss on the day.
Technical indicators are also favorable for buyers: moving averages are trending upwards, and the RSI (Relative Strength Index) shows positive momentum. If ETH manages to reclaim above $1,850, there is a strong possibility it could head towards $2,000 soon. If that happens, it may even break through a larger resistance zone around $2,500.
The Fibonacci Bollinger Band indicates an upper channel at $2,300. With a holding above $1,750 and in a bullish market, ETH is likely to make its way there.
ETH is still in a bearish channel, so caution is advised as confirmation is still awaited. A breakout above $1,870 could initiate the next short-term ETH rally.
However, if sellers want to regain control, they will need to push the price below the 20-day Exponential Moving Average (EMA20). If this level is breached, the price could drop to around $1,385, which is a key support area. A drop below this level could signal a short-term shift in favor of bears.
