Ethereum’s Price Continues to Surge Despite Setbacks
Ethereum’s price is steadily climbing towards the $4,000 mark, even in the face of market-wide liquidations and a delay in the SEC’s decision on Blackrock and Fidelity ETH ETF filings. This article explores how the bullish positions taken by Ethereum traders could impact the ongoing price rally in the near future.
Ethereum Price Reaches $3,900 Despite Challenges
On March 6, Ethereum experienced a significant price increase of 9%, reaching a peak of $3,900 within the daily timeframe. This surge is notable because it occurred despite two major bearish events:
- The crypto market’s intense volatility and over $1 billion in liquidations triggered by investors booking profits after Bitcoin reached a new all-time high on March 5.
- The U.S. SEC’s decision to postpone the approval of Blackrock and Fidelity’s filings for an Ethereum ETF product.
Despite these setbacks, Ethereum added $48 billion to its market cap within 24 hours and surpassed $3,900 for the first time in three years. The SEC’s delayed verdict means that May 7 now becomes the most significant date for a possible ETH ETF approval verdict.
Bullish Traders Maintain High Funding Rates
Speculative traders in the Ethereum ecosystem have remained bullish even during major liquidations in BTC and other altcoins. Santiment’s Funding Rates metric shows that ETH funding rates have remained positive since February 27, when ETH prices initially broke above $3,500.
Despite bearish headwinds on March 6, ETH bulls did not exit their positions. Instead, they increased their bullish positions, driving the funding rate to a peak of 0.09%. This indicates traders’ confidence in further short-term price upswings and suggests that ETH’s price may soon break above $4,000.
Ethereum Price Prediction: Reaching $4,500
Although the SEC’s delay may have impacted Ethereum’s journey to having a listed ETF in the U.S., the growing bullish conviction observed in the ETH derivatives markets suggests that the path to reclaiming the $4,000 price level remains unhindered.
IntoTheBlock’s global in/out of money chart confirms this stance by showing that over 97% of ETH holders are currently profitable. Profitable holders are less likely to sell during a bullish market phase, indicating that ETH may maintain a relatively high support level above $3,500 as it consolidates before its next upward movement.
If another bullish upswing occurs, the bulls will only need to surpass the $3,992 resistance level to reach new peaks above $4,000. With 1.3 million addresses having acquired 493,080 ETH at the minimum price of $3,992, establishing a steady support level within this range could pave the way for a move towards new peaks above $4,500.
Hot Take: Ethereum’s Rally Continues Unfazed
Ethereum’s price rally persists despite market-wide liquidations and delays in ETF approvals. The resilience shown by Ethereum traders and their unwavering bullish positions indicate a strong conviction in further price increases. As Ethereum approaches the $4,000 mark, it is only a matter of time before it reaches new peaks above $4,500.
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