Ethereum Futures Bullish Outlook, Spot ETH Price Still Looking for Relief


Ethereum (ETH) price action finally raised some hope with a 2% gain on Monday, but can ETH price stay above the $1,300 mark?

The crypto market reversed some of the losses over the weekend, with bitcoin price battling the $19,000 mark. As ETH saw itself above $1,315 on Monday, Ethereum price continued with BTC’s short-term gains.

ETH Price Profit Ground

On the daily chart, there was a significant increase in ETH price, staying above the $1,315 resistance level. The Daily Relative Strength Index crossed over to the buyers dominated side, presenting a bullish narrative for ETH.

ETH/USDT 1-Day Price
ETH/USDT 1-Day Chart | Source: TradingView

A healthy uptick in the daily RSI has seen buyers outperform sellers in the market as buying pressure continues to develop. A significant amount of ETH short contracts were liquidated, with short-term gains coupled with increasing buying pressure.

Data from Glassnode highlighted that short liquidations for futures contracts hit a one-month high of $2,883,883 on Binance. Ethereum’s average liquidation volume in futures also made a one-month high of $239,642.08 on Binance.

ETH Mean Liquidated Volume
ETH Mean Liquidated Volume in Futures Contracts Short Positions | Source: Glassnode Alerts

Furthermore, the number of addresses (7D MA) in gains in Ethereum surged to a one-month high of 45,770,599, finally spelling some relief for ETH hodlers.

Whales and big players still in doubt

While sentiment in the futures market turned slightly bullish, the larger entities still presented some skepticism. Notably, the number of addresses holding 10k+ coins hit a one-month low of $1,162 despite gains and fewer liquidations over the weekend.

ETH addresses 10k+
Source: Glassnode Alerts

A look at the supply distribution of ETH by balance of addresses also shows that even though the value may have appreciated in the short term, addresses holding a higher number of coins are still undervalued.

ETH Supply Distribution
Source: SanBase

ETH’s staking returns have also not been as significant as expected due to lower than expected Maximum Extractable Value (MEV) and tips in this bear market. According to Messari data, a 0% to 6% increase in real returns is pretty tangible, as ETH inflation has dropped from 4% to near zero.

ETHV Staking Return Value
Source: Mesari

Going forward, ETH price will need to sustain above the $1,317 mark as 10.47 million ETH is held near 2.28 million addresses. A break below the $1,317 price level could trigger some selling for the cohort, which could lead to short-term losses.

Price in/out of money around
Source: In the Block

While short-term gains triggered short liquidations and a slightly bullish futures market sentiment, the larger tone was still bearish. In case of a bullish reversal, ETH price is likely to move above $1,350 where the next major resistance for ETH lies.

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