Ethereum appears to be experiencing front-running activity. The pivotal inquiry isn’t whether it can hit $6,500 in the near future, but rather if traders are already factoring it into their strategies. Major holders are back in action, and the supply on exchanges is decreasing. Institutional investors are making their moves ahead of the curve, while retail traders are still trying to keep pace. Aggregated open interest has rebounded to $19.9 billion, with the average funding rate hovering around flat levels. That indicates traders are increasing their exposure, but not by means of heavily leveraged longs. Neutral funding alongside increasing open interest typically indicates a methodical, initial accumulation phase instead of a fear-of-missing-out breakout.
If this trend persists, it reinforces a gradual and consistent development in directional bias. This isn’t the type of leverage blowout typically observed at local tops. Whales have returned, and supply is once again tightening. On-chain flows indicate that more supply is exiting exchanges than entering them. The netflow chart has shown a steady stream of negative bars throughout late October, indicating that coins are increasingly being moved into self-custody and staking. Simultaneously, Santiment’s whale transaction count has surged once more, indicating that significant capital is on the move.
This is occurring while the price remains unbroken, indicating that this phase is more about positioning than chasing momentum. If this trend persists into mid-Q4, targeting the next structural resistance zone (approximately $6,200-$6,500) appears plausible and within reach. The data hasn’t confirmed it yet, but it does indicate positioning for that range. The pricing mechanism is already showing signs of moving in that direction, even before the breakout is evident on the chart. The daily chart revealed a rejection of the $3,900 level, causing the RSI to retreat toward the high-30s. MACD continues to stay beneath the signal line and has yet to turn positive, indicating that momentum is currently waning.
The pullback has not seen a significant increase in volume, indicating that this is not a case of panic unwinding. When considering the earlier data, this appears to be more of a near-term reset. The overarching trend of accumulation stays solid as long as $3,500 holds firm.