Ethereum’s Dizzying Heights: Will It Reach $3,400?

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Key Takeaways

  • Ethereum surges to $2,967 after short liquidations and bullish macro data. Shrinking exchange reserves, whale accumulation, and strong derivatives positioning support upside, though overbought signals may trigger short-term resistance near $3K

Ethereum’s [ETH] price has taken a sharp turn upwards, following two short liquidation events near $2.7K and $3K, triggered by bullish U.S. jobless claims data released on the 10th of July. 📈

This data surprised the market by coming in below expectations, signaling economic resilience and reducing recession fears. As a result, aggressive buying on Binance combined with thin liquidity forced massive short liquidations. 💰

At press time, ETH traded around $2,967, pushing Open Interest close to $7 billion. 💸

This dynamic reflects renewed leverage from traders anticipating continued upside as macroeconomic optimism ripples through high-beta assets like crypto. 🌈

Are shrinking exchange reserves setting the stage for more upside?

Meanwhile, Ethereum’s Exchange Reserves have dropped by 2.03% to $56 billion, indicating reduced sell-side pressure. Lower reserves often signal investor intent to hold, especially during phases of bullish sentiment. 📈

With fewer coins available on exchanges, the market becomes more sensitive to demand spikes. This condition aligns with the recent derivatives-driven rally, where ETH broke above resistance levels. 🚀

The shrinking reserves suggest supply scarcity may enhance Ethereum’s upward momentum, particularly if leveraged longs continue to dominate futures markets over the next few sessions. 📈

Are whales silently backing Ethereum’s next leg up?

However, whale accumulation has also strengthened Ethereum’s bullish outlook. IntoTheBlock data shows a notable 18.95% increase in large holder netflows over the past 7 days. 🐳

Despite price fluctuations, large entities continue to absorb ETH, likely betting on broader upside following dovish macro signals. 📉

These inflows reflect growing conviction among seasoned investors, potentially front-running further catalysts. 💸

With ETH holding firmly above $2,900, whale accumulation adds a strong on-chain foundation that may stabilize price and fuel the next breakout above $3K. 📈

Is the derivatives market flashing an aggressive long bias?

Therefore, derivatives data reveal clear bullish sentiment. ETH’s OI-Weighted Funding Rate surged following the jobless claims release, indicating rising demand for long positions. 📈

A high positive Funding Rate implies traders are paying a premium to maintain long exposure, reflecting expectations of continued gains. 💸

This spike mirrors past breakout patterns, where leverage builds rapidly after a macro surprise. 📊

If funding remains elevated and open interest stable, Ethereum may sustain its momentum without immediate correction, despite overbought oscillators flashing caution. 🚨

Will ETH bulls break past $3K or stall at key Fibonacci resistance?

Additionally, Ethereum approaches a critical resistance zone at the 1.618 Fibonacci extension near $3,000. 📈

The Fib projection, derived from its recent rally structure, also places future resistance at $3,457 and $3,870. 📉

While the price action remains bullish, the press time Stochastic RSI reading of 100 suggests that ETH was overbought. 🚨

Traders should remain cautious of short-term pullbacks. 📉

However, if ETH reclaims and holds above $3,000 with strong volume, the stage could be set for a continuation toward the next Fib targets. 🚀

Can Ethereum sustain its rally, or is a cooldown imminent?

Consequently, Ethereum’s rally appears backed by a strong mix of macro catalysts, whale accumulation, and bullish derivatives positioning. 📈

While shrinking exchange reserves and positive funding reinforce the case for continued upside, technical indicators show that ETH may soon face resistance near $3,000. 🚨

Whether bulls can maintain this momentum depends on sustaining buying pressure and macro support. 📈

A successful flip of $3K into support could open the path to $3,400, but failure to break resistance might trigger a short-term cooldown. 📉

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2025-07-13 03:10