Is an Ethereum (ETH) Bull Rally on the Horizon?

• Ethereum trading volume is up 9% in the past 24 hours.
• The bullish trend is possible with resistance at $3,296.

Ethereum is slowly recovering from the extreme bearish sentiment experienced last week, where it fell 5% over seven days, hitting a five-month low of $2,810. Currently, Ethereum is trading at $3,091, with a modest 0.88% gain in the past 24 hours, although its trading volume is down 9% in the same period.

Looking back, ethereum started the year strongly but began tapering off mid-March. Although ETH picked up momentum in mid-May amid anticipation of the approval of spot Ethereum ETFs in the United States, it has underperformed Bitcoin . Ethereum’s price has been in a correction trend since the end of May, tumbling from a peak of $3,500.

Meanwhile, recent on-chain data indicates substantial activity among Ethereum whales. Spot On Chain , an on-chain data provider, reported that an Ethereum whale withdrew 16,449 ETH, equivalent to $50.3 million, from the crypto exchange Binance. This move came as Ethereum price surged past $3,000, marking the first notable accumulation by a new whale address. The withdrawn ETH has since been transferred to a new wallet and remains there.

Furthermore, Whale Alert noted another substantial transaction involving 9,966 ETH, equivalent to approximately $30.6 million, transferred from the Kraken exchange to an unknown wallet. This activity aligns with a broader trend of whales resuming their accumulation of ETH following a period of distribution. The number of addresses holding over 10,000 ETH, which had declined since mid-April, began to rise again in early July.

Moreover, Ethereum experienced a significant drop in Open Interest during the early July sell-off. According to data from Coinglass, Ethereum’s Open Interest fell from $14.98 billion to a low of $11.97 billion, marking a 20% decrease.

Can Ethereum Bulls Give a Notable Comeback?

The timing of these large-scale withdrawals and accumulations coincides with the market’s anticipation of the Ethereum ETF, expected to go live next week. This development is a potentially bullish signal for Ethereum, as it could attract further investment and drive up prices.

The daily chart reveals that Ethereum is on a slippery bullish trend, with the 9-day EMA at $3,114. The daily RSI is at 41, indicating a nearing oversold situation. If Ethereum bulls continue their run, it might reach $3,296, with the next target at $3,521. However, if the bears take over, it might drop to $3,002, with lower support at $2,861.