Ethereum Addresses Holding 10,000 ETH Spike in Three Weeks

Despite recent selling pressure, Ethereum ETH's price has stabilized at around $3,700. Following this stabilization, key on-chain indicators suggest a strong underlying buying pressure, hinting at a potential upswing.

Reports show that whales have taken a keen interest in Ethereum, with whale addresses holding substantial Ether skyrocketing in the last three weeks.

Analysis of Ethereum Bullish Signals

Crypto analyst Ali Martinez recently reported a 3% uptick in Ethereum addresses holding 10,000 ETH and above over the past three weeks.

This rise in mega-whale addresses signifies a substantial uptick in buying interest from large investors, often called whales. Typically, such a trend indicates confidence in Ethereum's prospects and can be a precursor to significant price upswings.

In an X post, Ali cited on-chain data from Santiment, providing further insights into Ethereum's market sentiment. The data revealed that the recent approval of Ethereum Exchange-Traded Funds (ETFs) by the U.S. SEC has ignited enthusiasm among investors.

Moreover, some market analysts have drawn parallels between Ethereum's current price action and its performance in 2021. During that period, ETH recorded a remarkable rally of 83%.

Famous analyst Caled Frazen has emphasized the striking similarities between the current price patterns and those observed in 2021. However, he cautions that while historical patterns often rhyme, they do not repeat exactly.

Frazen's analysis highlighted the significance of the red zone from the 2021 cycle, which served as a critical support level.

Following a brief and failed breakdown, Ethereum surged by 83% within 50 days. The analyst suggests that the observed parallels could indicate a similar potential for a substantial rally. Investors should remain cautious and not expect an exact repetition of past performance.

Ethereum Open Interest Dip and Price Movements

A recent Coinglass chart shows that Ethereum's open interest has declined over the past few days. On June 6, it stood at $16.97 billion, but by June 9, it had declined to $16.35 billion.

Despite this decrease of $620 million, the drop in open interest was less severe than the price decline ETH recorded within the same period.

Between June 6 and June 9, Ethereum's price fell 7.38% from its weekly high. However, the open interest contraction was only 3.65%. This difference is significant because open interest typically contracts in proportion to price declines during market downturns.

In this case, the slower rate of decrease in open interest compared to the price drop might hint at potential bullish recovery signals for Ethereum. Given these market dynamics, Ethereum's price trajectory could follow one of two primary paths.

In a bullish recovery scenario, if Ethereum sustains its price above the $3650 support level and successfully breaks through the $4000 resistance, it could embark on a bullish run.

This scenario could see ETH targeting higher price ranges between $6000 and $7000, driven by renewed investor interest and increased market confidence.

Conversely, if Ethereum fails to hold the $3650 support and falls towards $3152, it could indicate a bearish phase, potentially exacerbated by panic selling or reduced market confidence.

However, such a decline might also offer buying opportunities for long-term investors anticipating a future rebound.

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