Over the past 24 hours, the price of Ethereum (ETH) has risen significantly from around $2,643 to $2,751. This upward trend shows an increase of 4% which is an indication of a very positive sentiment among investors.
Although, the 24-hour trading volume has decreased by 22% this may not necessarily mean there is less market activity, the price of ETH continues to soar. The decrease in the volume together with the price rise may suggest a decrease in the selling pressure, which is in line with the bullish trend.
On the other hand, open interest has risen by 4.46% to $11.17 billion even though the trading volume has been declining. Higher open interest but lower volumes are a sign that new positions are being established but not yet closed. This could suggest that traders are expecting future price changes, possibly a continuation of the rising price or a major change in market direction.
Among the developments, the recent events related to Jump Trading have become an object of interest. The firm appears to have started unstaking in Lido and has been liquidating large amounts of Ether, sending 17,049 ETH, worth around $46.44 million to a wallet that is often used for swapping on exchanges.
This move has raised questions on possible price reversal similar to the 20% plunge that occurred last week due to a similar sell-off from the firm.
Even though the sell-off continues, the market’s short-term reaction has been rather blasé with ETH still holding above $2,700. Nevertheless, the situation remains rather precarious, and more large-scale ETH dumping might negatively influence its rate, especially in case trading volumes keep falling.
The latest on-chain data shows a rise in Ethereum staking withdrawals where more than 122,000 ETH has been redeemed from staking pools within this week. This increase in withdrawals, the highest since May, points towards increased selling pressure as investors may be planning to sell off their investments.
Consequently, the ETH that has not been staked could increase the supply and therefore become a problem for the current rally if the demand does not rise to the occasion.
The Ethereum futures market has also witnessed a decrease in open interest in the recent past after the price drop which shows that there is less activity in the market. This could lead to increased volatility and the market may experience more fluctuations in the coming days.
Concurrently, the technical analysis shows that Ethereum’s price may experience some congestion around the $2,800 level, a critical level that, if breached, may ignite more upward movement. Nevertheless, if the price does not overcome this level, a pullback to $2500 might happen particularly if the selling pressure from big investors such as Jump Trading increases.However, if Ethereum is to continue with the current trend and trading above $2,800, then it could create further room for more gains.
Crypto analyst for instance Javon Marks has predicted that Ethereum could see a 75% breakout, potentially rising to $4,723 if current bullish divergences hold, Marks notes that the breakout and divergence will lead to a sharp increase in prices and may lead to new highs of Ethereum. However, this prediction is valid only if Ethereum continues with the current trend and breaks through the resistance levels.