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ETH Price Rally- Strong On-Chain Signals Drive Ethereum Price Higher
ETH Price Rally– Ethereum (ETH) finally broke through recent price stagnation, rising 6.3% to trade near $2,600. This rally follows weeks of notable on-chain activity and institutional positioning. In June alone, over 6 million ETH moved into non-CEX wallets, pushing accumulation addresses to nearly 22.75 million. Meanwhile, liquid staking hit a record 35.56 million ETH, highlighting growing long-term investor conviction.
Whales and Retail Buyers Show Unified Buying Pressure
Analysis of the Spot Taker CVD over 90 days reveals a dominant buy-side volume, signaling aggressive demand at asking prices. This pattern indicates a growing alignment between institutional whales and retail traders, often a precursor to sustained upward price moves. Such spot market behavior coupled with accumulation trends suggests a solid foundation for continued Ethereum (ETH) strength beyond short-term fluctuations.
Open Interest (OI) climbed 10.47% to $19.27 billion, confirming increased market participation and bullish sentiment. Rising OI alongside positive price action typically reflects fresh long positions entering the market. However, heightened leverage raises the potential for volatility if positions are forcefully closed. Still, the synchronized growth in spot and derivatives markets underscores strong near-term confidence in Ethereum.
Valuation Metrics Signal Caution Amid Price Surge
The NVT Ratio and Stock-to-Flow metrics spiked sharply, hinting at possible overvaluation. The NVT suggests price growth outpaces network activity, while the Stock-to-Flow ratio signals increased scarcity without proportional utility gains. This divergence suggests caution until network adoption and usage improve to justify elevated valuations.
Liquidation Clusters Indicate Short Squeeze Driving Momentum
Binance’s ETH/USDT liquidation heatmap shows many short positions liquidated below $2,500, fueling the recent breakout. Concentrated liquidation bands between $2,480 and $2,510 may now provide strong support. If Ethereum (ETH) maintains above this zone, further upside could emerge as bearish traders remain pressured.
In summary, Ethereum’s breakout above $2,590 is backed by strong on-chain accumulation, increasing spot demand, and growing derivatives activity. While valuation metrics counsel prudence, the market dynamics suggest Ethereum (ETH) may be poised for further gains if momentum and network activity persist.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
