Ethereum (ETH) has been stabilizing around $3,700 after facing selling pressure last week. However, on-chain indicators suggest a different story, hinting at significant buying pressure. The number of Ethereum addresses holding 10,000 or more ETH has surged by 3% in just three weeks, signaling a notable increase in whale activity.

On-chain data from Santiment reveals that enthusiasm for Ethereum spiked following the SEC's approval of Ethereum ETFs. Although social sentiment has stabilized, analysts believe this is an ideal state ahead of the commencement of trading for these new financial products.

Price Action Ahead

Some market analysts draw parallels between Ethereum's current price action and its performance in 2021, which saw a staggering 83% rally. While history may not repeat itself exactly, the similarities are striking. The "red zone" served as a crucial level in 2021, and a failed breakdown led to a remarkable rally.

Open interest has decreased by $620 million, but the reduction is relatively moderate compared to the price decline. This deceleration could be a bullish recovery signal, indicating a potential upward trajectory towards $4000. Breaching the support threshold at $3650 may lead to a downturn, but holding steady could signal a robust bullish surge targeting the $6000-$7000 range.

Conclusion

Ethereum whales are driving the price surge, and on-chain indicators suggest a significant rally ahead. With the SEC's approval of Ethereum ETFs and the surge in whale activity, the stage is set for a potential 83% price rally. While history may not repeat itself, the parallels are striking, and the future looks bright for Ethereum."