Journalist
Posted:
- Ethereum maintained a bullish bias on the price charts.
- The supply distribution offered an interesting insight.
Ethereum [ETH] broke past the $2.6k resistance that sellers have been defending since mid-January. The recent uptrend saw a huge increase in Open Interest behind Ethereum.
A recent Santiment post on X (formerly Twitter) noted that Bitcoin [BTC] and Ethereum recorded large increases in OI. For ETH, the last time OI was $5.4 billion was in March 2022.
Source: X
A recent one AMBCrypto report underlined the bullish sentiment behind ETH on the 12-hour chart. It also noted that a return to the range highs of $2.6k would provide a buying opportunity.
A closer look at the bullish sentiment behind Ethereum
Source: Santiment
The surge in Open Interest in recent weeks wasn’t the only metric indicating bullish conviction behind the king of altcoins. The financing rate was also consistently positive.
This showed that long positions remained dominant for much of the past three months.
The dormant circulation had a major peak on February 15. This was followed by a small retrace to the $2.7k mark, but the Ethereum bulls have since recovered.
However, increasing supply on the stock exchanges suggested that selling pressure could increase and reverse the gains of recent weeks.
The address balance showed that there had been distribution
Source: Santiment
The aforementioned price trend broke out past the $2.6k level and has been on an upward trend since October.
Open Interest has also increased steadily over the past two months, reinforcing the idea that conviction was strong. Speculators were willing to bet their capital that ETH was poised to make further gains.
Still, the supply distribution chart above showed that addresses with Ethereum amounts from 0 to 10 million have been sold over the past three months.
The whale (blue) category saw an uptick in early January, but this quickly reversed. This indicated that ETH holders had been slowly selling off some of their assets in recent months.
How much are 1,10,100 ETHs worth today?
The addresses holding 10 million or more ETH also rose, which could also explain why the above metric, as a percentage, has been slowly declining.
This shouldn’t cause panic among Ethereum investors, but it is something they should keep in mind. Other metrics along the chain continued to signal bullish conditions.