• Institutional accumulation and Liquid Staking hit records before ETH surged past $2,590.
• Open Interest and Taker Buy volume confirm rising conviction as shorts face liquidation pressure.

After weeks of strong on-chain signals and institutional activity, Ethereum [ETH] has finally responded with a breakout that challenges recent price stagnation.

At press time, ETH was trading at $2,600 after a 6.3% daily surge. 

This move follows a historic month of accumulation and staking activity. Over 6 million ETH were added to non-CEX wallets in June, driving accumulation addresses to 22.7465 million. Simultaneously, Liquid Staking hit a record 35.5643 million ETH. 

The combined data reflects long-term investor conviction, as institutions aggressively positioned for upside before the recent price response.

Are whales and retail buyers finally aligned on ETH’s direction?

Spot Taker CVD over the past 90 days reveals dominant Taker Buy volume, indicating that aggressive buyers have taken control of the market. Market participants are increasingly willing to execute at the ask, a strong indicator of bullish sentiment. 

This trend suggests that both institutional and retail traders expect further upside. Importantly, such spot activity tends to precede larger directional moves, especially when supported by other on-chain metrics. 

The alignment between spot demand and accumulation behavior hints at a more sustained ETH uptrend beyond short-term volatility.

Open Interest jumps 10.47%: Is leverage reinforcing the rally?

Open Interest surged to 19.27 billion, marking a 10.47% increase, signaling that more traders are entering the market with conviction. 

This rise in OI aligns with the spot market’s bullish signals, reinforcing Ethereum’s momentum. When Open Interest grows alongside positive price action, it often means new capital is entering on long positions. 

However, this also opens the door to future volatility if over-leveraged positions get squeezed. Still, the coordinated growth in both spot and derivatives markets underlines confidence in ETH’s near-term strength.

Do rising valuation ratios threaten ETH’s sustainability?

Both the NVT Ratio and Stock-to-Flow metrics spiked sharply, flashing a potential red flag. The NVT surge suggests that ETH’s current price is outpacing actual network activity, raising concerns about overvaluation. 

Meanwhile, the Stock-to-Flow ratio’s steep climb reflects growing scarcity but not necessarily growing utility. 

These two metrics together imply that while the asset looks attractive from a scarcity standpoint, its fundamental usage may not be rising fast enough to justify higher valuations.

Caution may be warranted if growth in real adoption doesn’t follow.

Did ETH’s surge trigger a liquidation cascade?

According to the Binance ETH/USDT liquidation heatmap, large clusters of liquidations were triggered below the $2,500 zone. 

The breakout above this level appears to have wiped out numerous high-leverage short positions, creating momentum via a short squeeze. 

As ETH surged to $2,597, the liquidation bands became densely concentrated between $2,480 and $2,510, which may now act as a strong support region. 

If ETH continues to hold above this zone, further upside could unfold as bears remain trapped and bulls regain control.

Conclusively, Ethereum’s breakout above $2,590 comes after sustained on-chain accumulation, dominant spot demand, and growing derivatives activity. 

While valuation metrics hint at caution, liquidation clusters suggest bears are already under pressure. If bullish momentum holds and network activity strengthens, ETH may be primed for a deeper rally.

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