Key Points
Ethereum [ETH](https://coineagle.com/price/ethereum/) has recently demonstrated a bullish trend. It has successfully broken past the $2.6k resistance that sellers have been protecting since mid-January.
The recent uptrend has been accompanied by a significant increase in Open Interest for Ethereum. A post on X (formerly Twitter) highlighted that both Bitcoin [BTC](https://coineagle.com/price/bitcoin/) and Ethereum have seen substantial increases in Open Interest.
Insights from On-chain Metrics
The last time Ethereum’s Open Interest was at $5.4 billion was in March 2022. The 12-hour chart has also been indicating a bullish sentiment for Ethereum. A retracement to the range highs at $2.6k would present a buying opportunity.
The Open Interest surge over the recent weeks isn’t the only metric indicating a bullish conviction for Ethereum. The Funding Rate has also been consistently positive. This implies that long positions have remained dominant for a significant portion of the past three months.
On the 15th of February, the dormant circulation saw a large spike. This was followed by a minor retracement to the $2.7k mark. However, Ethereum bulls have since recovered.
Despite this, the increasing supply on exchanges metric suggests that selling pressure might begin to rise. This could potentially reverse the gains made in recent weeks.
The price trend has seen a breakout past the $2.6k level and has been trending upward since October. Open Interest has also been consistently increasing over the past two months. This reinforces the belief that conviction remains strong, with speculators willing to risk their capital on the belief that Ethereum is set to register further gains.
However, the supply distribution chart shows that addresses holding any amount of Ethereum from 0 to 10 million have been selling over the past three months. The whale category (blue) saw an uptick in early January, but this was quickly reversed. This suggests that Ethereum holders have slowly sold some of their assets in recent months.
Addresses with 10 million or more Ethereum have also been increasing. This could explain why the above metric, as a percentage, has slowly fallen. While this shouldn’t cause panic among Ethereum investors, it is something they should be aware of. Other on-chain metrics continue to signal bullish conditions.
