Ethereum’s recent rebound has captured the interest of institutional investors and whales alike, as several large holders have begun transferring ETH to exchanges following the rally. The recent surge in ETH can be attributed to the Bank of Japan’s decision to implement a 25 basis point rate hike. The behavior sparked inquiries about whether major players anticipated imminent downturns or were merely reallocating capital following profits. Onchain Lens reported that BlackRock has deposited 36,579 ETH, valued at approximately $108.4 million, into Coinbase within the last 24 hours. Arthur Hayes transferred 680 ETH, approximately valued at $2.03 million, to Binance, a transaction frequently linked to possible selling activity. Whale activity frequently captures the spotlight, as significant transfers have the potential to sway short-term price movements. Traders often monitor these wallets to gain insights into potential sentiment changes or liquidity requirements.
Ethereum is currently trading around $2,980, reflecting an increase of approximately 0.85% in the last 24 hours. During the same period, participation in the spot market, however, showed signs of weakening. Trading volume has plummeted by 52%, landing at approximately $18.47 billion, indicating a lack of strong conviction supporting the recent movement. The slowdown stands in stark contrast to the positioning in derivatives. Despite the subdued spot activity, Open Interest saw an increase of 2.46%, reaching $38.51 billion, suggesting that traders are still adding leveraged positions. The observed divergence indicated that recent price stability was influenced more by positioning than by genuine demand.
According to technical analysis on the daily chart, ETH is currently consolidating within a narrow range, fluctuating between $2,790 and $3,000. Meanwhile, the overall market framework continues to exhibit a downward trajectory. Considering the current price action, a significant rally in ETH seems feasible only if it manages to break out of this narrow consolidation range. If the broader trend persists and the price breaks and closes a daily candle beneath the $2,790 mark, it may initiate significant downward momentum. On the flip side, should the trend reverse and the altcoin manages to close a daily candle above the $3,000 mark, it may indicate a potential conclusion to the extended bearish momentum.
In addition to these crucial levels, the momentum strength indicator Average Directional Index has hit 30.39, surpassing the significant threshold of 25, which suggests a robust directional trend in the asset. Meanwhile, the Chaikin Money Flow has further solidified the bearish outlook, with its value declining to -0.05, indicating increasing selling pressure and capital outflows from the asset. Ethereum’s latest rebound has garnered interest primarily for its positioning rather than any strong conviction. Whale transfers and increasing leverage indicate a need for caution beneath the surface, positioning ETH at a critical juncture.