Ethereum (ETH) has been bullish since the sustenance witnessed on July 5th. When writing, the price has grown nearly 25% since July 5th (almost two weeks). In the past seven days, it has grown by 11.81%.
The number 2 crypto by market cap was optimized by 2.43% in market value and by 15.78% in trading volume in the last 24 hours, as per the CoinMarketCap.
Its market cap was $421.457 Billion, and its trading volume amounted to $16.935 Billion at the time of writing. 120.26 million ETH were circulating in people’s hands, and its total supply has reached 100%.
The liquidity appeared promising in ETH, with a dominance of 17.3% in the crypto verse, as the volume to market cap ratio of 24 hours stands at 4.04%.
The stats mentioned above support a bullish cause, and an analyst, @Leon Waidmann, picked spectacular on-chain insights, which he shared on X. In his post, he shared a chart of all cumulative exchange balances of ETH declining, resulting in huge outflows.
Similarly, the analyst further stated that nearly $126 Million worth of ETH was withdrawn from exchanges this week. That indicated a giant accumulation in play ahead of the ETH SPOT ETFS launch, which will officially start trading on July 23rd.
Meanwhile, @Leon Waidmann looks at this opportunity from a very optimistic angle and thinks the next massive rally in ETH could be coming. So, investors and traders should be cautiously prepared and avoid FOMO (DYOR).
Will the Bullish Trend Persist?
The Ethereum price has experienced a sparking bullish bounce from $2900 support in the past 2-weeks from July 5th onwards. The crypto quant chart displayed the TBSR (Taker Buy/Sell Ratio), a key metric for analyzing the futures market sentiment.
Values above 1 show aggressive buying by bulls as dominant, while values beneath 1 indicate that selling pressure by bears is dominant.
As the TBSR chart shows, the Ratio surged above 1, simultaneously with the bullish resurgence from the important key level in Ethereum’s price. This surge highlighted strong buying interest in the perpetual market, indicating a notable bullish sentiment.
If this uptrend in the TBSR continues, it confirms a potential for a bullish trend in the market, with the price likely rallying toward higher price levels.
Does OI Indicate a Possibility of Major Short-Squeeze Incoming?
Open Interest in Ethereum stands at 11.5 billion, as per crypto quant, and the graph shows growth in the past 15 days concerning its price. The OI also remained heavily above 10 Billion based on a 14-day SMA.
The number of open positions (long and short) has shown remarkable growth in the past 12 months on derivative exchange trading pairs. Thus, the rising trend in open contracts could support the ongoing bullish price trend.
As Open Interest (OI) increases, significant attention is coming into the derivative market, with more liquidity and volatility.
So, investors and traders should be cautious (DYOR). In turn, this might boost the probability of a short-squeeze in the price movement of ETH.
What Does 24-Hour Liquidation Illustrate?
In the past two weeks, the ETH liquidation data has witnessed significant growth in shorts compared to the longs. The same was depicted on the price chart with the bullish surge.
The long/short ratio was 0.992, signifying more shorts than long liquidations in the past 24 hours.
Similarly, the number of liquidated shorts amounted to approximately $12.56 Million. While compared to the liquidation amount of longs, it was much higher, from $8.70 Million in longs.
Will the Next $4000 Level Be Attained Soon?
The ETH has been managing its $2900 support for quite a long time. After the deterioration in June 2024, the price uplifted from the same support, which showed its credibility.
Based on the recent price study, the ETH aimed at $4000 and has taken a short pullback recently, and lately got backing from 50-day EMA.
MACD histogram has surged at 54.5, and the RSI jumped above the median line, depicting the chances of momentum going to explode soon.
At press, the price growth remained flat on intraday, where it last traded at $3498.0. The resistance levels were $3600 and $3750, respectively, and the support levels were $3380 and $3240, respectively.
Ethereum Showing Bullish Signs
Ethereum has shown bullish signs in the past two weeks, with a price increase of 25%. Analysts point to on-chain data suggesting accumulation and bullish sentiment. Technical indicators hint at a potential price rally for ETH.
