Ethereum Price Surges to $3,530 as Bulls Eye $4,000
Ethereum (ETH) price has reached a new peak in 2024, hitting $3,530. This surge is attributed to strategic traders placing bullish bets early before ETFs open for trading. Despite the price increase, ETH is still considered undervalued compared to the capital invested in the derivatives markets over the weekend. The question now is whether the bulls can take advantage of this positive momentum and drive the rally above $4,000.
Ethereum Open Interest Reaches 3-Year Peak
The decline in Bitcoin dominance has led to speculation that Ethereum could gain more traction in the altcoin markets. As a result, speculative traders have been piling on bullish bets on ETH futures markets. Ethereum’s open interest, which represents the total value of funds invested in derivatives contracts for ETH, stood at $11.4 billion at the close of trading on March 1. Over the weekend, it increased by $400 million, reaching a 3-year peak of $11.8 billion.
- This indicates that despite a 6% pullback in ETH prices from $3,500 to $3,300, speculative traders continued to increase their bullish positions.
- With over 97% of current BTC holders now in profit, it is anticipated that some of them will reinvest their gains into altcoins like Ethereum.
- If Bitcoin ETFs trigger another buying frenzy and send BTC prices soaring, there is a chance that ETH price could rise towards $4,000.
Ethereum Price Prediction: Breaking Above $4,000
As of March 4, Ethereum price is trading above $3,500 and is expected to attempt breaking above $4,000 for the first time in 3 years. However, there is significant resistance around the $3,650 area that needs to be overcome.
- Analysis of in/out of the money data shows that 1.1 million addresses acquired 205,890 ETH at the maximum price of $3,572. These investors may choose to sell as ETH approaches their break-even point.
- If the bulls can surpass this sell-wall, it could generate stronger bullish momentum for a retest of $4,000.
- On the other hand, if the bears regain control and push the price below $3,000, it could signify a downturn in the market. However, this seems unlikely with the support buy-wall at the $3,100 level.
Hot Take: Ethereum Bulls Eyeing New Highs
Ethereum’s recent price surge and increase in open interest indicate that bullish sentiment is strong among traders. With strategic bets being placed before ETFs open for trading and a potential reinvestment of Bitcoin profits into altcoins like Ethereum, there is optimism that ETH price could continue to rise.
The key challenge now is breaking through resistance levels and maintaining bullish momentum. If successful, Ethereum has the potential to reach new highs above $4,000.
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