Ethereum (ETH) Price Rally Builds Momentum: Bullish Patterns Signal Breakout

Ethereum is also trading above its 200-day Exponential Moving Average (EMA), a level often seen as a long-term bullish indicator. However, with the Relative Strength Index (RSI) entering the overbought zone, the potential for short-term corrections remains.

If ETH declines below $2,430, which combines the 200-day EMA and the 50% Fibonacci level, the uptrend could weaken. A further drop may see ETH testing support at the 100-day EMA near $2,144.

Leverage Builds Pressure with $1.5 Billion in Liquidation Risk

Leverage across the Ethereum market has increased, exposing both bulls and bears to large-scale liquidations. According to Coinglass, if ETH rises 3% to around $2,586, nearly $786 million in short positions could be forced to close.

Such an event could trigger a short squeeze, which would intensify buying pressure and extend the rally. The quick pace of liquidations can amplify price momentum in a short time.

On the other side, a 3% decline to around $2,438 could threaten $715 million worth of long positions. If this occurs, the price could fall sharply due to cascading liquidations.

This situation places Ethereum in a sensitive position, where a minor move in either direction could lead to larger market swings. Traders are keeping a close watch on these levels as the next move could be decisive.

Whale Accumulation Grows as Large Holders Return to Profit

Ethereum price recent rally has brought renewed activity from large holders. One major whale, previously down $21 million, has now flipped that loss into a $21.7 million profit. The investor currently holds over 50,000 ETH, valued at around $104.5 million based on the latest market prices.

This turnaround reflects growing confidence among experienced market participants. As Ethereum broke above the $2,500 mark, data showed a rise in wallet addresses accumulating ETH. This trend suggests a stronger belief in the assets price recovery and potential for further gains.

Whale accumulation often signals long-term bullish sentiment. Increased buying from large holders can also reduce available supply, supporting upward price momentum. With the broader market showing signs of strength and key technical levels holding, the return of profitable whale activity could play a central role in Ethereums ongoing rally.

Profit Zone Expands for 6.6 Million Ethereum Price Investors

Data from IntoTheBlocks Global In/Out of the Money (GIOM) tool shows that 6.61 million investors are nearing profitability. These investors hold about 66.96 million ETH bought between $2,360 and $2,557, with the average at $2,462.

At higher prices, ETH holders choose to realize profits, which lowers the general willingness to sell. If Ethereum holds the price at the level above $2,557, then each and every token among the total supply of 67 million tokens would be profitable. This development may minimize the risk of massive losses and maintain the extended-term upward trend.

A consistent bull market, with ETH price breaking through the $3,000 level may see technical experts predicting an advance to $4,570 as the next primary objective. Doing so would indicate significant follow through of the recent reversal of uptrend.