The price of Ethereum (ETH) surged significantly after two Short liquidation events at the $2,700 and $3,000 levels, driven by a positive surprise in the U.S. unemployment claims data released on July 10. This data was lower than expected, raising hopes for economic recovery and alleviating recession fears, thereby boosting market momentum.
This optimism has increased strong buying pressure on Binance, combined with thin liquidity, facilitating a massive Short liquidation. As a result, ETH's price surged to around $2,967, leading to a significant increase in OI to nearly $7 billion.
This development indicates new leverage from traders expecting continued growth, as optimism about macroeconomic conditions spreads strongly, particularly in high-beta assets like cryptocurrencies.
Exchange reserves decrease – Is this the momentum for Ethereum's next price increase?
Ethereum's trading reserves have decreased by 2.03%, down to $56 billion, a clear sign that selling pressure is gradually easing. The decrease in reserves often indicates that investors tend to hold ETH for the long term, especially in periods of positive market sentiment.
As the amount of coins on exchanges decreases, the market becomes more sensitive to sudden increases in demand, creating the potential to push prices higher. This decline in reserves aligns perfectly with the recent price surge of ETH, which was driven by derivatives products and breakthroughs through important resistance levels.
With supply scarcity, if Long orders continue to dominate in the derivatives market, Ethereum may continue its strong upward trend in the next trading sessions.
Are whales quietly driving Ethereum's growth?
Strong accumulation from Ethereum whales seems to be contributing to the bullish outlook for this currency. Data from Sentora shows that net inflows from large investors have surged by 18.95% in the past 7 days, despite the market still experiencing price fluctuations. This indicates that whales continue to absorb ETH, reflecting confidence in Ethereum's long-term growth, especially after positive macro signals.
This capital flow not only reflects the confidence of experienced investors but also opens up the potential for creating important catalysts that drive the market to continue growing. The fact that ETH remains solid above the $2,900 mark, combined with this accumulation, creates a stable on-chain foundation, which could be a key factor for Ethereum to advance further and surpass the $3,000 threshold.
Ethereum derivatives market – Is strong buying momentum on the rise?
Data from the derivatives market is currently showing a clear bullish sentiment. After the positive unemployment claims data was released, the funding rate weighted by OI for Ethereum surged, reflecting strong demand for long positions.
A high positive funding rate indicates that traders are willing to pay a premium to maintain long positions, with expectations for ETH's continued growth. This is a sign of a positive market trend, where leverage is significantly increased, especially after an unexpected macro shock.
This explosion could be the key factor helping Ethereum maintain its growth momentum, especially if capital continues to flow in and OI stabilizes. Although technical indicators may be warning of an overbought condition, if capital flows remain high, Ethereum may continue to advance without facing a major correction immediately.
Will Ethereum's price break above $3,000?
Ethereum is currently approaching an important resistance level at the Fibonacci extension of 1.618, around the $3,000 mark. Fibonacci forecasts suggest that if the price continues to rise, the next resistance levels could be at $3,457 and $3,870, based on the recent bullish structure.
Although ETH's price continues to maintain an upward trend, the Stochastic RSI currently stands at 100, warning that Ethereum may be overbought. This prompts traders to exercise caution, especially with potential short-term pullbacks that may occur.
However, if Ethereum can hold above the $3,000 mark with significant trading volume, the price could continue to target higher Fibonacci levels in the future.
Ethereum's strong price increase is currently supported by a range of positive factors, including a combination of favorable macro elements, whale accumulation, and bullish sentiment from the derivatives market. Additionally, the decrease in foreign exchange reserves and positive capital flows continue to reinforce the potential for price increases.
However, technical indicators suggest that Ethereum may face important resistance around the $3,000 level. Whether buyers can maintain strong enough pressure to surpass this level will depend on the ability to uphold support from macro factors and sustain strong buying momentum in the market.
If Ethereum can successfully reverse the $3,000 support level, the potential to continue rising to $3,400 is entirely feasible. Conversely, if it cannot break through this resistance level, Ethereum may face temporary weakness and short-term correction.
In summary, the next direction for Ethereum will depend on maintaining buying pressure and supportive macro factors, with the $3,000 level being critical.