Ethereum Price Hits $2,100 Milestone Following BlackRock’s ETF Application
Last week, Ethereum’s price broke through the significant $2,100 milestone after BlackRock filed an application for spot exchange-traded funds (ETFs). Bitget’s chief research analyst discussed how this news could impact ETH price action and trading patterns in the coming weeks.
BlackRock ETH Spot ETF Approval Will Bring Mainstream Recognition
Ethereum’s price surged to $2,150 after news of BlackRock’s proposed application for an ETH Spot ETF on Nov. 9. The announcement led to a strong defense of the crucial $1,900 support territory by the bulls.
Ryan Lee, the chief research analyst at Bitget crypto exchange, explained that shifts in ETH derivatives trading patterns triggered by BlackRock’s application have contributed to Ethereum’s positive price action over the past week.
Lee also noted that this application is expected to bring mainstream institutional recognition and capital allocation to Ethereum, similar to what was seen with previous BTC ETF applications. After the Nov. 9 announcement, the Ethereum price performance surpassed Bitcoin, with the ETH/BTC exchange rate climbing by 10% within 24 hours.
Ethereum Traders Paying Record Fees to Hold out for Future Profit Opportunities
In response to these market-moving events, Ethereum traders are paying record fees to keep their bullish positions open. On-chain data from Glassnode shows that the ETH Perpetual Funding Rate rose to a peak of 0.034% on Nov. 10 and 12, respectively.
Positive values of funding rates indicate that bullish traders are paying short positions and vice versa. A significant increase in positive funding rates means most investors anticipate that prices or market liquidity will rise further and open further profit opportunities.
ETH Price Prediction: Is $3,000 Next Target?
From the data trends analyzed above, Ethereum traders are showing a strong inclination to go long on ETH through futures contracts. Ryan Lee believes that if arbitrage opportunities become apparent, market participants will consider buying ETH in spot markets and shorting ETH Futures contracts to capitalize on the funding rate.
To capitalize on this potential arbitrage window, the bulls must first scale the initial resistance around $2,300. The Global In/Out of the Money (GIOM) data also confirms this prediction, showing that 4.2 million holders had bought four million ETH at an average price of $2,280.
Hot Take: The Future of Ethereum’s Price Action
The recent application for an ETH Spot ETF by BlackRock has led to significant positive price action for Ethereum. This development has attracted institutional participation in Ethereum’s derivatives markets and is expected to bring mainstream recognition and capital allocation to Ethereum.
If this trend continues, it could lead to a potential increase in Ethereum’s price toward $3,000 as traders are showing a strong inclination to go long on ETH through futures contracts. However, any dip below $1,800 could invalidate this positive prediction. Overall, Ethereum’s future price action looks promising with potential for further growth.
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