Ethereum Recovery Drives Whale Activity and Future Price Potential

Ethereum’s recovery has prompted increased whale activity, indicating potential price volatility. The recent price surge correlates with positive U.S.-China trade commentary and significant market metrics, including a 12% rise in open interest. Currently trading around $1,816, ETH aims to maintain above $1,850, with bullish indicators suggesting a potential rise towards $2,000; however, a drop below $1,385 could signal bearish trends.

Ethereum has staged a notable recovery after experiencing several weeks of decline, regaining market dominance as it reached historic lows. This rebound was influenced by comments from U.S. Treasury Secretary Scott Bessent about the unsustainable nature of U.S.-China trade tensions. As ETH’s price rose robustly, activity among whale investors surged, indicating potential for significant price fluctuations in the near future.

In the last 24 hours, Ethereum’s price increased by over 10%, resulting in a substantial uptick in various on-chain metrics. Data from Coinglass highlighted that approximately $127 million worth of ETH positions were liquidated, with buyers losing around $34.2 million and sellers incurring greater losses of approximately $92.8 million from short position closures. This movement was catalysed by optimistic remarks regarding U.S. tariffs by former President Trump, suggesting an imminent resolution to trade disputes.

Additionally, Ethereum’s derivatives market experienced a 12% rise in open interest, exceeding $21.5 billion, indicating heightened investor interest. Furthermore, positive shifts in funding rates for ETH perpetual futures have been noted; these rates rose from 0.0018% to 0.0087%, indicating increased trader confidence in upward price trends.

On April 22, Ethereum’s market dominance dropped to a mere 7%, its lowest since September 2019, but following the price surge, this percentage increased to above 7.5% on April 23, along with large transaction volumes, which saw a remarkable 400% increase to 4.64 million ETH. This upsurge in open interest and favourable funding rates signifies an influx of capital into the market, enhancing buying pressure and stabilising price gains.

Currently, Ether (ETH) is striving to maintain its position above $1,850, recovering from a drop towards $1,500. As of now, ETH trades at approximately $1,816, marking an 11% increase over the past 24 hours. Technical indicators reflect a bullish outlook, with rising moving averages and a positive Relative Strength Index (RSI). Sustaining above $1,850 could pave the way toward a target of $2,000, with the potential for surpassing significant resistance near the $2,500 mark. Conversely, for sellers to regain control, pushing prices below the 20-day moving average (EMA20) is essential; falling below this level could see prices retreating to the key support zone around $1,385, signalling a possible shift toward bearish market sentiment.