Ethereum’s recent price surge past the $2,850 mark has sparked significant interest and speculation within the cryptocurrency community. This breakout has triggered substantial exchange outflows, totaling $206 million, indicating a bullish accumulation trend among investors. However, the market is not without its skeptics, as bearish whales have been actively shorting the asset, adding a layer of complexity to the current price dynamics.
On July 12, the on-chain tracker Lookonchain reported that Sharplink (SBET) purchased a significant amount of Ethereum, totaling 21,487 ETH worth $64.26 million through OTC and Coinbase Prime. This purchase followed a previous acquisition of 10,000 ETH worth $25 million from the Ethereum Foundation. Despite this bullish activity, three wallets opened heavy leveraged shorts, betting against ETH with leverage ranging from 15x to 25x. The total amount shorted was 48,458 ETH worth $143.37 million, using just $10.5 million in USDC margin. This standoff between bullish and bearish sentiments highlights the current market’s divided outlook.
The significant outflow of Ethereum from exchanges, as reported by the on-chain analytics platform CoinGlass, further supports the bullish narrative. On July 11, Ethereum saw net outflows of over $206 million across exchanges. Such movements often reflect whale accumulation and reduced sell-side liquidity, reinforcing the bullish setup. However, the decline in daily trading volume, which dropped by 35% in the last 24 hours, adds ambiguity to the near-term price direction.
Technical analysis by AMBCrypto revealed that Ethereum broke out of the key resistance level at $2,850 and appeared bullish during press time. However, the asset seems to be experiencing price consolidation due to its overextended price and a gain of over 20% in the past three days. In this scenario, the price may either retest the breakout area or continue its upward momentum after consolidating for a while. At press time, the ETH price was trading above the 200-day Exponential Moving Average (EMA) on the daily timeframe, indicating that the asset is in an uptrend. The breakout projects a potential 37% rally toward the $4,000 level if ETH maintains its footing above the former resistance.
The bullish momentum is further supported by the accumulation of Ethereum by various companies. According to reports, companies like BitMine and SharpLinkGaming are boosting their Ethereum treasuries, driving bullish momentum. Additionally, BlackRock’s total Ethereum holdings now exceed $5 billion, with the firm purchasing 19,813 ETH worth $52.7 million. These developments suggest that institutional investors are increasingly bullish on Ethereum, which could further drive its price upward.
In summary, while the current market sentiment for Ethereum is predominantly bullish, the presence of bearish whales and the decline in daily trading volume add layers of complexity to the price dynamics. The significant exchange outflows and the accumulation by institutional investors support the bullish narrative, but the market remains divided. The technical analysis suggests that Ethereum has the potential to rally toward the $4,000 level if it maintains its footing above the former resistance. However, the near-term price direction remains uncertain, and investors should closely monitor the market developments.
