Ethereum is preparing for a breakout towards $3,000. The bullishness has been driven primarily by whale accumulation, increasing ETF inflows, and positive technicals. Combined with the recent performance of the cryptocurrency and prevailing market dynamics, there is a strong case to be made for continued upward momentum. Though bullish signals abound, traders need to be mindful of the danger and major support levels to keep an eye on.

Whale Activity and Accumulation

On June 12, wallets classified as whale wallets (those holding between 1,000 and 10,000 ETH) moved en masse. They unlocked a breathtaking 871,000 ETH—over $1.5 billion—in a single day! This big build-out, in turn, is a strong indicator that large, smart-money investors are positioning themselves for future positive catalysts.

Accumulation addresses, which are non-exchange wallets, have increased significantly in June, rising by 35.97%. These addresses now easily bottomed out at a new record 22.7465 million ETH that indicates an extreme long-term holder accumulation trend. During June, these addresses had bought 6.0184 million ETH, netting 21.29% profits at the month’s end price of $2,565.

Past Ethereum backtests have shown a very optimistic future, projecting 46.5% cumulative return from 2020-2025. This performance beats a basic buy-and-hold approach by 7.3 percentage points, indicating that smart accumulation can help you earn better returns.

Technical Analysis and Market Indicators

Ethereum is still above its long-term trendline, having kept an upward bias here. The cryptocurrency has painted a gorgeous bull flag pattern. This pattern shows a consolidation phase after a steep ascent, usually indicating that another breakout is just around the corner.

The 50-day Simple Moving Average (SMA) at $2,563. It still trades well below the 200-day SMA of $2,345, forming a “death cross.” This technical pattern is usually a harbinger of short-term bearishness, indicating downward pressure may be coming.

Meanwhile, Ethereum’s put/call ratio just reached 1.28, meaning more traders are hedging against potential downside risk. Second, there is a generally cautious, or even negative, sentiment in the market. Still, almost 80% of the July call options are priced above $3,000, and 30% even target $3,500 or above, showing extremely bullish sentiment for July.

Liquidation and Volatility

The liquidity vacuum contributed to an unprecedented $259 million in futures shorts liquidated on June 16. This event kicked off an even larger Ethereum bullish rally. This forced bears to cover their short positions, adding more upward pressure on the price.

Ethereum’s average implied volatility has dropped from 68% in June to 60%, indicating less uncertainty in the market. This decline in overall volatility is a welcome development, one that bodes well for more sustained, if not stable, price movements.

The current Ethereum liquid staking ecosystem is booming! As we finally approach the end of the month, users have staked an impressive 35.5 million ETH. This is up by 2.83% and reflects increasing confidence in the Ethereum network, as well as its staking rewards.

Key Levels and Potential Risks

A clear break of the $2,673 resistance level would likely confirm a direction back up towards $3,000 and higher. This level will be key in confirming the bullish outlook, and a break above may trigger a wave of additional buying momentum.

A turn under $2,520 might usher in tests of support at $2,450 then potentially $2,350. These levels are very important in order to keep the long-term, upward trend in place and avoid a fairly deep correction.