Key Points
- Ethereum sees a $100 million boost and 66% of addresses are in profit.
- Despite a risk of pullback, a bullish reversal is underway.
Ethereum has received a significant boost of $100 million, a clear indication that smart money is entering the market.
This surge has led to a 30% volume spike and a rapid recovery from the recent $2.5K dip, prompting speculation about the potential height of this rally.
Rising Risk Appetite
Risk appetite among futures traders is on the rise, with $37.21 million in Ethereum shorts eradicated in a single day and over $1.5 billion in new positions opened.
Whales and institutions anticipated this, with smart money injecting an additional $100 million into the market, leading to a critical save.
As Ethereum looked set to revert to pre-election levels, aggressive buyouts maintained $2.5K as a solid support.
This 32% drop from its $4,016 post-election peak was purely profit-taking, with over 95% of HODLers making a profit.
Currently, this figure has decreased to 66%, but historical data suggests it’s not low enough for a true bottom, putting Ethereum at risk of another pullback, especially with market FUD still looming.
Is Ethereum in for More Pain?
The ETH/BTC ratio has hit a three-year low, but a bullish reversal is in progress.
With the MACD turning green and Bitcoin consolidating, it appears investors are looking at Ethereum for rotation.
However, despite Ethereum’s 5% surge, exchange reserves have increased by over 4%, indicating traders are not in full HODL mode yet.
A pullback seems inevitable, with a staggering 9.9 million addresses, holding 62.14 million ETH, just flipped into profit at $2,560.
This equates to $1.5 billion ready for a potential sell-off.
The real question is whether smart money can keep Ethereum in consolidation before a breakout, or if fading greed and creeping fear will send it tumbling back to $2,200.
The upcoming days will provide the answer, but currently, the odds favor the latter.
