Ethereum Price to Rally Toward $5,232 as Open Interest Hits ATH
Ethereum (ETH) price retraced more than 15 percent in the past two weeks to trade at about $3,375 on Friday, December 27, during the early European session. As a result, the large-cap altcoin, with a total valuation of about $406 billion and a 24-hour average trading volume of around $23 billion, rebounded from a crucial support level.
With the TOTAL2 having already retested the previous all-time high (ATH), around $1.6 trillion, Ethereum price is well positioned to rally towards $5k soon. Moreover, the ETH/BTC pair has been forming a macro reversal pattern, coupled with the bullish divergence on the weekly Relative Strength Index (RSI).
Ethereum Whales Prepares for Major Uproar
With Bitcoin price having outperformed the majority of large and mid-cap altcoins in the past two years, whale crypto investors have been repositioning their portfolios in preparation for a parabolic altseason. Moreover, the Ethereum’s Open Interest (OI) and volume recently surged to a new ATH of above $23 billion.
According to on-chain data analysis provided by Coinglass, the overall supply of Ethereum on centralized exchanges declined from 16.12 million on November 29, to hover about 15.3 million at the time of this writing.
The notable decline of Ethereum on CEXes is majorly attributed to the rising demand from the U.S. spot Ether ETF issuers. Led by BlackRock’s ETHA, and Fidelity’s FETH, the US spot Ether ETF issuers have attracted more than $2.64 billion in cumulative total net inflow since inception, thus a total assets under management of about $12.01 billion.
On Thursday, the US spot Ether ETFs registered net cash inflows of about $117 million and a total value traded of around $390 million.
Meanwhile, on-chain data analysis shows a while investors withdrew 1,500 Ether, worth $5.21 million, from Binance in the last 24 hours.
What Next?
From a technical analysis standpoint, Ethereum price has rebounded from a falling logarithmic trend, which formed year-to-date, thus signaling potential bullish uproar in the near term. Furthermore, Ethereum price has held above the weekly 50 Moving Average in the past two months.
