Ethereum (ETH) bulls seem to have their sights set on a price target of $2,800, even as the futures data reveals a split sentiment within the market, indicating a low probability of a sustained rally of 33%.
Recent Price Movements
Following a peak of $2,209, the price of Ether has dipped below significant monthly resistance, which has faced challenges five times since February. On-chain insights illustrate a strong accumulation zone at around $2,800, where over 3 million ETH was acquired.
Key Accumulation Zones
Data from Glassnode reflects substantial accumulation near the target cost basis of $2,800 for ETH. This means that there are large groups of investors who bought at this price level, making it a significant area of interest during potential upward price movements.
ETH cost basis distribution heatmap. Source: Glassnode
The data indicates a possible ascent toward $2,800, especially since historical supply concentrations between $2,200 and $2,800 are minimal, suggesting that a breakout above current resistance could result in a more fluid price increase.
Futures Market Activity
Ether’s futures open interest grew by 21% this week amidst the price climb toward $2,200, signaling that many traders opened leveraged positions. However, post the $2,200 test, there was a roughly 6% drop in open interest as some opted to close their positions rather than increase exposure.
Ether price, open interest, aggregated spot volume. Source: velo.data
The retreat suggests profit-taking among long traders or a reduction of risk as prices approached the upper end of the range, resulting in a deceleration of the rally.
Caution Among Traders
Despite increasing spot market demands, the bid–ask ratio held a strong positive tone while Ether consolidated near $2,000, but signs of relaxed buying pressure appeared as prices neared $2,150. Futures positioning revealed approximately 59.4% exposure on Binance with long traders, creating a balanced environment that could lead to erratic price fluctuations.
With historical patterns of ETH accumulation suggesting a possible rally towards $2,800, the current climate among futures traders indicates a cautious outlook near ETH’s existing price range.
This article does not constitute investment advice. Please conduct thorough research before making any financial decisions. Cointelegraph does not guarantee the accuracy of the information presented.
