- Ethereum price surged to $3,380, up 4.6% in just 24 hours.
- Recent whale deposits on Kraken, alongside increasing OI, hint at potential near-term price pressure.
Ethereum (ETH), the second largest cryptocurrency by market capitalization, continues to show dynamic market trends in early 2025. A giant whale recently deposited 20,000 ETH (valued at $67.6 million) into Kraken, reigniting discussions on large-scale investor activity and its influence on Ethereum price developments.
This whale, which withdrew 217,513 ETH from exchanges in September 2022, has been actively engaging with Kraken since March 2024.
Such moves often signal significant changes in market sentiment and liquidity, prompting traders to evaluate key indicators and prepare for potential price changes.
A Closer Look at Ethereum Market Performance
Thanks to weaker-than-expected IPC data, Ethereum price surged to $3,380 after gains of almost 5% in 24 hours. Its 24-hour trading volume reached an impressive $26.2 billion, highlighting robust market activity and significant interest from retail and institutional investors. Likewise, the altcoin’s market capitalization stood at $407.2 billion – a sign of continued investor confidence despite periods of increased volatility.
The aforementioned whale’s latest 20,000 ETH deposit appeared to be in line with Ethereum’s latest price spike, hinting at potential profit-taking or anticipation of a price correction. Historically, large-scale whale deposits have preceded bursts of selling pressure on the ETH price due to greater liquidity on the sell side. However, this pattern is not always definitive.
External factors such as macroeconomic developments and Bitcoin price correlation also play a crucial role in Ethereum’s trajectory. As Bitcoin stabilizes above $95,000, Ethereum traders can expect sustained bullish momentum. Additionally, the expansion of ETH staking and the deflationary effect of EIP-1559 further strengthen its long-term appeal.
ETH Price Action and Key Indicators
The Ethereum price has experienced significant volatility, influenced by both technical factors and large-scale investor activity. In fact, over the past year, the ETH price has moved in a range between $1,500 and $4,500, demonstrating both bullish and bearish phases.
Here, it is worth pointing out that the whale’s deposit history provides insight into potential future price movements. Between March 2024 and today, this whale has deposited 146,639 ETH on Kraken at an average price of $3,170 – a sign of strategic profit-taking at higher price levels.
Source: TradingView
Technical analysis also revealed that ETH’s recent rally tested a strong resistance level at $3,400. Breaking above this level could allow Ethereum to challenge the $3,500-$3,600 range in the near term. Conversely, failure to maintain momentum could push ETH towards the $3,200-$3,100 support zone.
A review of the major moving averages also highlighted that Ethereum is trading above its 50-day and 200-day moving averages.
The resilience of the Ethereum network
Additionally, Ethereum’s active addresses have seen a steady increase over the past few months. In fact, on-chain data revealed that active addresses consistently hovered around 400,000 per day, demonstrating high participation across the entire ecosystem.
Source: Etherscan
Analyzing the trend in more detail, we can see that periods of increases in active addresses have often coincided with price increases – a sign of growing demand and network utility. For example – The recent increase in active addresses aligned with Ethereum’s price rise to $3,380, strengthening the correlation between network activity and market performance.
However, a drop in this metric, on the other hand, could lead to a reduction in network activity and potential downward pressure on the price of ETH. In light of Ethereum’s robust developer ecosystem and continued innovation, network activity levels will likely remain a reliable barometer of market sentiment and future price movements.
Signals for Ethereum’s next move
Ethereum Open Interest (OI) has seen notable fluctuations recently, indicating increased activity in the derivatives market. At the time of writing, Ethereum’s OI on major exchanges stood at $1.52 million after a significant weekly rise. This rise corresponds to the last rise in ETH prices, meaning traders are taking new positions in anticipation of increased volatility.
Source: Coinglass
Spikes in open interest have often preceded large price movements because they indicate greater participation and leverage in the market.
Recent whale deposits on Kraken, as well as increasing OI, suggest potential near-term price pressure. If the majority of positions are long, a sudden market downturn could trigger liquidations, thereby accelerating the decline. Conversely, sustained buying pressure could lead to a short squeeze, propelling the ETH price higher.
Gauging Ethereum Market Sentiment
Finally, Ethereum’s MVRV ratio indicates that long-term holders are making significant profits, while short-term holders face tighter margins. This disparity highlighted bullish market sentiment, with long-term holders benefiting from the recent price surge.
Source: Coinglass
When the MVRV ratio for long-term holders peaks, it often means local prices are nearing a peak. Especially since profit taking by these holders can introduce selling pressure.
Conversely, a decline in the MVRV ratio for short-term holders could indicate undervaluation and potential buying opportunities. At the time of writing, Ethereum’s MVRV ratio appeared to be approaching critical levels where long-term holders could begin to profit, posing a potential risk of a near-term correction.
