Ethereum (ETH) is once again in the spotlight as its price inches closer to a significant milestone: $3,000. At the time of writing, Ethereum’s value soared to $2,654, just a breath away from its 2024 peak. Meanwhile, Bitcoin (BTC) stole headlines earlier this week by smashing through the $50,000 barrier for the first time since 2022.
While Bitcoin’s achievement captivated the media, Ethereum enthusiasts are quietly but confidently positioning themselves for a similar breakthrough. The burning question on everyone’s mind: will Ethereum soon reclaim the $3,000 mark?
The relationship between Ethereum and Bitcoin prices has long been intertwined, leading many to speculate that Bitcoin’s surge past $50,000 could pave the way for Ethereum’s own bullish momentum. Indeed, signs in the Ethereum derivatives market suggest a growing bullish sentiment.
Derivative traders have been ramping up their bets on Ethereum, with a noticeable uptick in leveraged positions. As reported by Crypto.News, data from CryptoQuant, a provider of on-chain and market analytics, reveals that the funding rate for Ethereum rose to 0.4% on 13 February. This surge in funding rates, the highest in over 40 days, indicates a surge in optimism among traders betting on an imminent Ethereum price upswing.
Ethereum’s upward trajectory is underscored by this surge in funding rates following Bitcoin’s milestone. It paints a picture of overwhelming bullish sentiment, suggesting that Ethereum could soon make a dash for the coveted $3,000 mark.
Adding fuel to the Ethereum fire is the increased buying activity among US-based corporate entities. These entities are eagerly eyeing an Ethereum spot ETF approval in the first half of 2024. Recently, Frank Templeton joined the fray by filing ETH derivative applications with the US Securities and Exchange Commission (SEC) on 12 February.
The institutional optimism is mirrored in the spot markets, where rapid Ethereum purchases are underway. CryptoQuant’s Coinbase Premium index, which tracks the price difference between Ethereum on Coinbase Pro and Binance exchanges, reveals a significant trend. With Coinbase Pro attracting mainly US-based corporates and high-net-worth investors seeking a regulated environment, the index indicates heightened buying pressure on Coinbase Pro compared to retail activity on Binance.
This pattern, observed before major Ethereum rallies, has already begun to play out, with Ethereum’s price surging 11% since 8 February. Coupled with the bullish sentiment among speculative traders, this buying spree from whales sets the stage for Ethereum’s ascent to $3,000.
In summary, Ethereum’s trajectory appears poised for further gains, buoyed by rising funding rates and institutional buying. Historical data suggests that Ethereum could soon make a push towards $3,000, although challenges lie ahead. The $2,750 range presents a significant hurdle, with a sizable number of addresses holding Ethereum at that level. Overcoming this resistance could pave the way for Ethereum to reach its next milestone.
Of course, a drop below $2,000 could signal a negative trend, though such a scenario seems unlikely in the near term. For now, all eyes remain fixed on Ethereum as it charts its course towards $3,000 amidst a backdrop of excitement and anticipation in the cryptocurrency market.
Ethereum is a decentralised, open-source blockchain platform that enables developers to build and deploy smart contracts and decentralised applications (DApps). Created by Vitalik Buterin in 2015, Ethereum introduced a groundbreaking concept by allowing programmable transactions to be executed without the need for intermediaries. Ether (ETH) is the native cryptocurrency of the Ethereum network, used to facilitate transactions and incentivise network participants.
What distinguishes Ethereum from other blockchains is its ability to support Turing-complete smart contracts, which are self-executing contracts with predefined conditions written directly into code. This flexibility has made Ethereum a hub for innovation, powering a wide array of applications ranging from decentralised finance (DeFi) and non-fungible tokens (NFTs) to supply chain management and decentralised autonomous organisations (DAOs). As one of the leading blockchain platforms, Ethereum continues to evolve, with ongoing upgrades and improvements aimed at enhancing scalability, security, and functionality.
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