Ethereum’s Rise Spurs Risky Bets Despite Selling Pressure
Ethereum: Rising Prices Lead to Riskier Bets?
The recent price increase of Ethereum (ETH) seems to be leading traders to take riskier bets. In the last three months, addresses likely holding less than 10 million ETH have probably sold.
Ethereum’s Bullish Tendency
Ethereum is showing a bullish tendency on the price charts. The distribution of supply provides interesting insights. Ethereum has broken through the resistance mark of $2.6k, which has been defended by sellers since mid-January. The recent uptrend showed a massive rise in open interest behind Ethereum.
Rising Open Interest and Funding Rate
A recent announcement by Santiment published on X (formerly Twitter) noted that both Bitcoin (BTC) and Ethereum saw significant increases in open interest. The last time ETH’s open interest was at $5.4 billion was in March 2022. The funding rate was also consistently positive. This shows that long positions dominated a good part of the last three months.
Potential Selling Pressure
However, the increasing supply on the exchanges suggests that selling pressure could start to rise and potentially undo the gains made in recent weeks. The address balance showed that a distribution was underway. Addresses holding any amount of Ethereum from 0 to 10 million have sold in the last three months. The whale category (blue) saw a rise in early January, but this was quickly reversed.
Outlook for Ethereum Investors
This suggests that ETH holders have slowly sold some of their assets in recent months. The addresses with 10 million or more ETH also increased, which could explain why the above metric has slowly fallen as a percentage. This should not cause panic among Ethereum investors, but it is something they should keep in mind. Other on-chain metrics continue to signal bullish conditions.
Source: AMBCrypto
