The post Top Reasons Why Ethereum Price Could Be Setting Up for a Strong Rally in 2026 appeared on BitcoinEthereumNews.com.

The post Top Reasons Why Ethereum Price Could Be Setting Up for a Strong Rally in 2026 appeared first on Coinpedia Fintech News Ethereum price is quietly attracting more liquidity across derivatives, on-chain activity, and exchange flows, even as its price remains locked in a consolidation range. While ETH has struggled to produce a decisive breakout in recent weeks, underlying data suggests participation across the network is strengthening. This growing disconnect between improving fundamentals and muted price action is drawing close attention from traders, raising a key question: Is liquidity positioning ahead of a larger move, or simply building risk within the range? Derivatives Positioning: Open Interest Continues to Climb Data from CryptoQuant shows Ethereum open interest rising steadily toward the $19–20 billion range, approaching recent highs. Importantly, this increase has occurred without a corresponding price expansion. For traders, rising open interest in a sideways market often signals positioning rather than trend confirmation. It suggests expectations are building for a larger directional move while also increasing the risk of volatility once the price breaks out of its current structure. Exchange Reserves: Signs of Supply Tightening Ethereum exchange reserves have trended lower over the same period, indicating a reduction in readily available sell-side supply. While short-term fluctuations remain, the broader picture points toward ETH being moved off exchanges rather than prepared for immediate liquidation. Historically, declining exchange balances tend to support price stability during periods of consolidation, especially when combined with rising derivatives participation. Network Activity: Active Addresses Remain Resilient On-chain data shows Ethereum’s daily active addresses holding broadly within the 350,000 to 400,000 range, with periodic spikes higher. While activity has not accelerated sharply, it has also not broken down despite recent Ethereum price weakness. This stability suggests continued network usage and participation. This reinforces the view that the current…

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Filed under: News - @ December 29, 2025 8:27 am