Key Takeaways
- Ethereum surged 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 surged sharply 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.
Source: TradingView
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.
