As global markets fluctuate due to the ongoing tensions between Israel and Iran, the crypto market still has its highlights. Among them, Ethereum (ETH) is particularly noteworthy.
As of the time of writing, the current price of Ethereum is 2,575 USD, up 1.5% in the past 24 hours. Over the past week, the price has fluctuated between 2,473 and 2,869 USD, accompanied by a release of market risk-averse sentiment, gradually increasing volatility.
Trading volume surged, and the derivatives market is heating up.
On-chain data shows that trading activity around Ethereum is significantly heating up:
Spot daily trading volume surged by 32%, reaching 14.27 billion USD.
Futures trading volume increased by 26.46%, reaching 53.09 billion USD.
**Open Interest** increased by 1.2%, reaching 35.13 billion USD
This indicates that traders are actively positioning themselves, expecting greater price volatility in the future.
Whales are buying, while small retail investors are exiting.
According to data from the on-chain analysis platform Santiment, mid to large-sized wallets holding between 1,000 to 100,000 ETH are continuously increasing their holdings, having purchased 1.49 million ETH in just the past month. These 'whales' and 'sharks' currently hold a total of 26.98% of the circulating supply of Ethereum.
At the same time, many retail investors choose to cash out at high points, creating a situation of 'large holders taking over, small holders selling'—historically, this is often a typical signal before a new round of market trends begins.
Institutions are entering strongly: BlackRock and Cumberland are both increasing their holdings.
The attitude of institutional funds is more evident.
BlackRock's iShares Ethereum Trust has recently accumulated over 1.5 million ETH, valued at approximately 4 billion USD.
Between June 3 and June 6 alone, the fund purchased 240 million USD worth of Ethereum, with a total monthly increase exceeding 500 million USD.
At the same time, well-known institutions like Cumberland and Galaxy Digital are also synchronously positioning, further validating the market's medium to long-term bullish expectations for ETH.
Technical signals: volatility compression, is a trend reversal imminent?
From a technical perspective:
The price is currently below the 20-day moving average but is attempting to break through.
The Bollinger Bands are narrowing, and volatility is compressing, often a precursor to a trend reversal.
The RSI indicator is at 52, in a neutral range, but with increased trading volume and whale accumulation, it is expected to provide support for a rebound.
Although the MACD and momentum indicators are still weak, they are showing signs of bottoming out. If the MACD line breaks above the signal line, it will release a strong bullish signal.
Key price levels to watch moving forward.
If it can stabilize above 2,600 USD and break out with volume, it will challenge the resistance level of 2,870 USD above.
If it successfully closes above 2,870, it will open up upward space to test 3,000 USD.
Key support level to watch is around the lower Bollinger Band near 2,400 USD.
Ethereum is at a critical point of dual resonance between fundamentals and technicals. Whales and institutional funds are continuously increasing their positions, with on-chain data steadily warming up. If this is followed by a strengthening of the overall market, ETH is expected to welcome a structural trend. In the short term, the gains and losses around the 2,600 USD mark will be crucial.