Ethereum Surges 11% Amid Investor Accumulation

Ethereum has recently experienced a notable price rebound, with an 11% increase over the past week. This sudden surge has ignited a mix of optimism and skepticism within the crypto community, prompting questions about whether this marks the beginning of a bullish reversal or a classic market trap.

The price of Ethereum jumped from around $1,412 to $1,567, attracting the attention of analysts and traders. On-chain data reveals that investors have been actively accumulating ETH, particularly in the $1,460–$1,470 range. Over 380,000 ETH was purchased in this zone, followed by another 453,000 ETH within just five days. This level of buying activity typically signals strong investor confidence, often seen at the start of new bullish trends. However, the source of this demand is crucial. If the buying is primarily from the spot market, it suggests a long-term belief in ETH’s growth. Conversely, if leveraged traders are driving the demand, the situation could be more precarious, as risk-off environments can quickly unwind leveraged positions, leading to a sharp price drop.

The Fear and Greed Index for Ethereum has shifted towards “greed,” currently at 55, indicating a significant psychological shift from the recent dominance of fear. This suggests that investors are becoming more optimistic, though perhaps overly so. However, the Net Unrealized Profit/Loss (NUPL) metric, which tracks the ratio of investors with unrealized gains, remains deep in the “capitulation” zone. This implies that despite the price rebound, most holders are still underwater and could sell at the first sign of weakness, adding to the market’s uncertainty.

Exchange data provides additional insights. Around 100,000 ETH flowed into spot exchanges last week, which could indicate potential sell pressure as investors look to cash out. Conversely, 60,000 ETH exited the derivatives market, suggesting growing interest in long positions. Funding rates are also trending positive, reinforcing the idea that more traders are betting on Ethereum’s continued rise. However, this optimism comes with risks, as a sharp pullback could catch long traders off-guard if the spot market does not support the optimism.

Overall, Ethereum’s 11% rebound is a welcome change from the bearish trend that dominated early 2025. However, it is too early to declare a full market recovery. The mix of optimism and underlying uncertainty suggests the market is at a crossroads. Whether this rebound is a true turning point or just a temporary bounce will depend on how investors, especially in the spot market, respond in the coming days. For now, the message is clear: be hopeful, but stay cautious.