Ethereum addresses holding 10,000 or more ETH have surged by 3% over the past three weeks, indicating a significant increase in buying pressure for ETH. If the ETH price holds above $3,650, the bulls may take a shot at breaking above $4,000.

Ethereum Whale Addresses

Crypto analyst Ali Martinez has highlighted a notable rise in the number of Ethereum addresses holding 10,000 or more ETH. This uptick signals a significant increase in buying pressure for Ethereum.

On-Chain Data

On-chain data from Santiment reveals that enthusiasm for Ethereum surged following the SEC’s approval of Ethereum ETFs. Despite this initial excitement, social sentiment has now stabilized, which is considered an ideal state ahead of the commencement of trading for these new Ethereum financial products.

ETH Price Action

Some market analysts believe that the ETH price is forming chart patterns similar to those in 2021, after which it rallied by a staggering 83%. In a recent analysis, noted analyst Caled Frazen drew attention to the striking similarities between Ethereum’s current price action and its performance in 2021.

Open Interest

Based on the Coinglass chart, Ethereum (ETH) open interest witnessed a decline from $16.97 billion recorded on June 6 to reach $16.35 billion as of the latest update on June 9, marking a decrease of $620 million. Despite ETH’s price experiencing a 7.38% dip from its weekly peak on June 6, the reduction in open interest was comparatively moderate, contracting by only 3.65%—almost half of the price decline.

Bullish Recovery Signal

A deceleration in open interest reduction relative to price decline amid a market downturn can potentially be interpreted as a bullish recovery signal for two significant reasons. In the event that Ethereum ($ETH) breaches the support threshold at $3650, there’s a possibility of a downturn toward $3152, marking the previous Fair Value Gap (FVG). Should Ethereum manage to hold steady at the $3650 mark, it could signal a potential upward trajectory towards $4000. Furthermore, surpassing the resistance barrier at $4000 might instigate a robust bullish surge targeting the $6000-$7000 range.