• Ethereum [ETH] rallied 11.48% over the last two days due to strong demand from whales and short squeeze turbocharging its momentum.
• The number of addresses holding 10,000+ ETH reached a four-week peak on 15 February while addresses holding 1,000+ ETH grew to its highest point since the beginning of February 2023.
• Despite this bullish performance, ETH’s price is still at resistance level it failed to break through in the last three weeks and open interest in derivatives market is decreasing.
Ethereum [ETH] Price Rally
Ethereum [ETH] concluded a bearish second week of February but was not left behind when the crypto market delivered a bullish performance over the last two days. The rally was fuelled by strong demand from whales and a short squeeze turbocharging its momentum.
Alerts revealed the grip that whales had over the market at the time of writing as per Glassnode, with an increase in addresses holding a minimum of 10,000 ETH reaching a four-week peak on 15 February. Addresses holding at least 1,000 ETH also demonstrated something similar, as the metric grew to its highest point since the start of February 2023 – confirming accumulation by whales.
Exchange Flows & Open Interest
A look at exchanges revealed significant sell pressure indicating several investors were bearish; however there was higher net outflow overall coming into play. This provided support for Ethereum’s [ETH] 11.48% rally to its press time price of $1665.30 – still within resistance level which it has failed to break through in the last three weeks. Open interest metric registered an uptick between 12 – 14 February but since reverted to downside showing that derivatives demand was slowing down at time of writing.
Sustaining this bullish momentum will depend on whether or not Ethereum can maintain demand and push higher with strong support from buyers rather than forming another sell wall near resistance level due to increased sell pressure near said level.
Overall ETH bulls have reclaimed dominance but will need more consistent demand and buying pressure if they hope to break through key resistance levels and experience further upside growth potential in order for Ethereum[ETH]’s price prediction 2023-24 come true .