While Bitcoin (BTC) price is showing signs of surging above a key support/resistance level around $68,000, Ethereum (ETH), the largest altcoin with a fully diluted valuation of around $316 billion and an average daily trading volume of around $15.1 billion, has been approaching a key resistance level around $2,626.
Over the past week, the price of Ether has increased by more than 9 percent, thus approaching the upper boundary of a symmetrical triangle consolidation. As a result, speculation about Ether’s next move has led to a spike in Open Interest (OI), with many traders betting on a bullish breakout.
Ethereum Whales Are Back
After staying away from the Ethereum market over the past few months, as shown by significant outflows from US spot Ether ETFs, on-chain data shows that whale investors are now buying more ETH.
Over the past two days, US spot Ether ETFs have seen net inflows of over $62 million, led by BlackRock's ETHA.
Meanwhile, the supply of Ether on centralized exchanges has dropped by nearly 3 million in the past 24 hours, led by Binance, Kraken, and OKX.
On the left side
According to astute crypto analyst Benjamin Cowen, the Ethereum market outlook is heavily influenced by macroeconomic changes, especially as the Fed is set to launch its quantitative easing (QE) program.
Notably, Cowen highlighted that the Ether supply has been increasing by about 60k per month for the past six months. Therefore, Cowen emphasized that it will only take three to four months for the Ether supply to reach pre-consolidation levels.
However, Cowen notes that the trend has changed significantly since the Fed began cutting interest rates by 50 basis points.
“Monetary policy has more to do with this than many of us would like to admit. But further rate cuts would likely increase demand on the ETH network,” Cowen noted.
