Ethereum just broke out strongly above the $2,590 mark after a historic month of accumulation and staking from institutions and individual investors.
The increase in Open Interest and Taker buying volume confirms that the ETH uptrend is being reinforced by short position liquidation pressure, opening up the prospect of a sustainable uptrend in the coming time.
MAIN CONTENT
Over 6 million ETH is stored in decentralized wallets, recording a record staking level of 35.564 million ETH in June.
Taker volume and Open Interest surge, a clear sign of consensus between whales and retail investors.
Valuation metrics like NVT and Stock-to-Flow are rising, warning of risk, but short position liquidation pressure is creating momentum to push prices up.
Are Whales and Retail Investors Agreeing on Ethereum's Trend?
Based on 90-day Spot Taker CVD data, the outstanding Taker buy volume shows that institutional and retail investors are actively buying, creating clear market strength. According to CryptoQuant, the sharp increase in trading volume at the ask price reflects the bullish sentiment and expectation of further ETH price increases.
This trend not only demonstrates the active participation of large and small investor groups, but also often precedes major price movements. The convergence between spot market demand and hoarding behavior also expands the expectation of a long-term bullish trend for ETH.
Does 10.47% Open Interest Increase Fuel the Uptrend?
Open Interest reached 19.27 billion, a sharp increase of 10.47%, showing that new capital is pouring into Long positions in the Ethereum derivatives market. This is a reliable indicator of trader confidence when the market is rising in price and increasing open interest at the same time.
This also highlights the favorable synergy between the spot and derivatives markets, reinforcing the strength of price trends. However, the rapid growth of leverage also poses the risk of strong volatility when positions are forced to liquidate.
Does Rising Valuation Risk a Sustainable Impact on ETH?
Ethereum's NVT and Stock-to-Flow metrics have just made a notable jump, causing many financial experts to warn of the risk that ETH's price is higher than actual activity on the network.
A rapidly increasing NVT Ratio indicates that market capitalization is far exceeding actual transaction value, while Stock-to-Flow indicates increasing scarcity but may not necessarily correspond to application growth. This is a signal to be cautious without significant growth in users and network utility.
Did the ETH price surge really trigger a massive wave of liquidations?
Binance’s ETH/USDT liquidation heatmap shows that many highly leveraged short positions were liquidated below the $2,500 price zone, creating a strong short squeeze that helped ETH break above this resistance level.
The liquidation levels concentrated in the $2,480 – $2,510 region could now become solid support if ETH holds above this level, thereby fueling further upside as bears get trapped and buyers return to control the market.
Ethereum is witnessing a strong shift in investor sentiment and position, opening up breakout opportunities but also requiring close monitoring of valuation and liquidity indicators in the market.
John Doe, CEO CryptoQuant, July 2025
Summary: ETH Price Outlook in the Short and Long Term
Driven by record-breaking reserves and staking activity, coupled with signs of strong spot buying and growing derivatives Open Interest, Ethereum is well-positioned to continue its rally. However, current valuation metrics require investors to consider the risks without any progress toward network adoption.
The short-term liquidation wave has created a rebound for ETH, if the network experience growth process is maintained, ETH is likely to break out deeper in the upcoming period.
Frequently Asked Questions
1. What does it mean to store ETH on a decentralized wallet?
Storing in decentralized wallets shows long-term trust and direct control of assets, avoiding risks from centralized exchanges. This is a positive sign of ETH's sustainable direction.
2. Does an increase in Open Interest mean that the price will continue to increase?
Rising Open Interest indicates strong capital flows but can lead to large fluctuations if leverage is too high. Need to monitor market fundamentals and money flows further.
3. What are the risks of a high NVT index?
High NVT suggests that ETH prices may be higher than the network's real value, warning of bubble risks without improved network usage.
4. How does short liquidation affect ETH price?
Short liquidation waves often trigger short-term price breakouts due to pressure from leveraged short positions, creating bullish momentum.
5. Is the ETH uptrend sustainable in the long term?
The sustainable growth trend depends on the actual growth of the network and the ability to maintain institutional and individual investor cash flow.
Source: https://tintucbitcoin.com/ethereum-dat-2-600-usd-du-bao-gia/
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