Ethereum showed a modest price recovery as geopolitical tensions eased, with significant accumulation by large investors despite falling trading volume. The cryptocurrency faces a key technical resistance level that could determine whether its bullish momentum continues.
Ethereum (ETH), the world’s second-largest cryptocurrency, has begun to climb as the West Asian crisis appears to be de-escalating. Another factor supporting ETH’s optimism is significant demand from whales along with a massive spike in Open Interest (OI), indicating rising Futures demand for the asset.
At press time, ETH was up 1.25% over the past 24 hours, trading at $2,166. Despite the price recovery, the asset appears to have experienced lower participation, as its trading volume has plummeted over 33% to $18.53 billion. Falling volume alongside a rising price suggests the current upside move may not be sustainable, as investors and traders seem hesitant compared to the previous day.
On March 25, Ethereum whales added a massive 142,773 ETH, worth $308 million, from major exchanges like Binance, Bitget, and Kraken. The only notable name in this accumulation was Bitmine, which added 67,111 ETH worth $145 million. Analytics tool CryptoQuant reveals similar data, showing a massive decline in exchange reserves, with a record drop of 842,604 ETH over the past week.
Alongside long-term holders, intraday players also appeared to follow the same trend by placing strong bets on the long side. At press time, intraday traders were heavily positioned at $2,086.8 on the lower side and $2,183.4 on the upper side near liquidation levels. At these levels, traders have built $887.04 million worth of long-leveraged positions, while $255.29 million in short-leveraged positions sit on the opposite side. Ethereum’s OI surged 7.51% over the past 24 hours, reaching $30.83 billion, indicating a rise in the notional value of contracts driven by increased leverage exposure and fresh position buildup.
On the four-hour chart, ETH appeared bullish, as it formed a bullish inverted head and shoulders pattern and looked to be on the verge of a breakout. Currently, ETH seems to be experiencing resistance at the neckline near $2,180, which it has faced over the last 10 candles. If ETH’s upside move continues and it clears the key resistance level at $2,180 and closes a four-hour candle above it, it could potentially see an impressive price jump of over 8% and may reach the $2,351 level in the coming days.
