Ethereum’s price momentum has captured the market’s attention as conflicting on-chain signals paint a mixed outlook. Despite increased exchange inflows indicating selling pressure, ETH has surged 25.32% to trade at $2,428.15, reflecting rising volatility and renewed interest. With retail traders reducing exposure but Whale aggressively accumulating, the stage is set for a potentially explosive move.
Are Ethereum Whales Setting the Stage for a Breakout?
Whale activity has intensified over the past week, with large holder netflows skyrocketing by 373.68% in seven days and 968.57% in the last 90 days. Notable transactions include Abraxas Capital withdrawing 49,644 ETH ($92M) from Binance and Kraken, and Trump-linked World Liberty acquiring 1,587 ETH worth $3.5M. This accumulation trend suggests that institutional investors maintain confidence in Ethereum’s prospects despite retail uncertainty.
Moreover, Open Interest has climbed 13.16% to $14.85 billion, indicating that traders are reopening positions in anticipation of a significant price move. However, with leveraged positions increasing, the risk of a swift reversal also grows if spot support fails to materialize.
Funding Rates Flip Positive as Bullish Sentiment Rebounds
After weeks of flat readings, Ethereum’s Funding Rates have turned positive, with Binance ETH Funding Rate at 0.01%. This subtle shift suggests that buyers are gradually regaining control, potentially foreshadowing further upward momentum. Historically, a positive funding rate often coincides with price surges, as more traders bet on higher prices.
Sentiment data further confirms this bullish tilt, as bullish accounts slightly outnumbered bears 103 to 98 over the past week. If Ethereum sustains its position above $2,200 and Funding Rates continue to rise, this could solidify the ongoing recovery and set the stage for a potential breakout above the critical $2,800 resistance.
Key Levels to Watch as Ethereum’s Breakout Looms
Ethereum has successfully reclaimed the $2,225 support, but the next major resistance lies at $2,800. Bollinger Bands signal expanding volatility, while the stochastic RSI at 72 indicates building momentum. Short-term resistance may emerge if overbought conditions persist, but maintaining support at $1,793 could provide the foundation for a broader rally. For now, traders should monitor whale movements, funding rates, and retail sentiment closely to gauge Ethereum’s next decisive move.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Sygnum: Solana’s Memecoin Revenue Limits Its Potential to Overtake Ethereum
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
