As the crypto market turned bullish, the Ethereum price quickly climbed above $2,250, following a strong move in Bitcoin, which surged past $74,000. The price action suggests the second-largest cryptocurrency may be entering a fresh recovery phase. Notably, Ethereum has reclaimed a key resistance level for the first time in nearly 30 days, reflecting improving trader sentiment. While some view the move as a short-term bounce, growing whale accumulation indicates that a stronger price move could be developing beneath the surface.
Is the Current Breakout A Short-Term Rise?
While Ethereum has recently pushed above key resistance levels, derivatives data suggest the rally may be heavily influenced by leveraged trading activity. The chart below highlights the relationship between ETH price movements and changes in open interest over the past few weeks. Notably, the latest price surge toward the $2,250 level coincides with a strong spike in open interest.
Such a pattern often suggests that traders are aggressively opening leveraged long positions, anticipating further upside. However, when leverage builds rapidly, the market becomes more sensitive to sudden price swings. Even a minor pullback can trigger long liquidations, potentially leading to sharp short-term corrections.
Falling Exchange Reserves Signal Growing Whale Accumulation
Another important on-chain indicator supporting the bullish outlook for Ethereum is the steady decline in ETH balances held on centralized exchanges. According to recent data shared by a popular analyst, Ali, exchange reserves have dropped from around 14.6 million ETH to nearly 14.3 million ETH within just a few days.
A falling exchange balance typically suggests that investors are withdrawing tokens from exchanges into private wallets or long-term storage. This behavior is often associated with accumulation rather than immediate selling pressure.
What’s Next for the ETH Price Rally?
Ethereum closed the weekly session on a bullish note, rebounding from lows below $2,000 to reclaim levels above $2,200. This recovery has pushed the price above a key resistance zone while also moving toward the upper boundary of a rising channel, signaling strengthening momentum. The recent move above the upper Bollinger Band suggests volatility expansion could follow, often leading to a sharp directional move.
On the daily timeframe, the RSI continues to trend upward, even as the price consolidates within a relatively narrow range, indicating strengthening underlying momentum. At the same time, Ethereum has entered the Ichimoku cloud, which remains bearish for now; however, the price is steadily pushing toward the upper edge of the cloud, hinting that bullish pressure is gradually building. While derivatives data still reflects elevated leverage in the market, the overall technical structure appears to be shifting in favor of bulls.
If the Ethereum (ETH) price sustains above the $2,200–$2,250 support zone, Ethereum could attempt a move toward the $2,400–$2,450 resistance range in the short term.
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