Key Points
- Ethereum’s recent surge over $3,000 might establish a new support level due to significant accumulation at this price range.
- Increased activity among Ethereum whales and a spike in Open Interest indicate a bullish trend for the cryptocurrency.
The price of Ethereum (ETH) has recently surged above $3,000, potentially establishing a new support level.
Many addresses have acquired Ethereum at this price, further solidifying this potential support level.
Ethereum’s Demand Zone
Data from IntoTheBlock suggests that Ethereum’s rise above $3,000 has placed it in a significant demand zone.
Historically, Ethereum has experienced substantial accumulation at this price range, with over 5 million ETH being acquired by nearly 3 million addresses.
This accumulated volume, now valued at over $18.3 billion, could make the $3,000 price zone a strong support for the cryptocurrency.
On 20th May, Ethereum’s price surged by over 19%, reaching over $3,661.
This marked the first time in over a year that Ethereum experienced a single-day spike of over 19%, and the first time since April that it reached the $3,600 range.
Whale Activity
Increased activity among Ethereum whales could further reinforce the $3,000 support level.
In the last 24 hours, whale wallets holding 100,000 to 1 million ETH purchased over 110,000 ETH, valued at over $360 million.
Ethereum’s Open Interest has also experienced a significant spike, reaching its highest level in over a year.
This surge in Open Interest suggests a substantial cash inflow into Ethereum as its price surpassed the $3,500 mark, signaling a bullish trend.
The funding rate has risen to its highest point since April, further indicating a rise in positive sentiment, with buyers and long position holders dominating the market.
