Ethereum Bulls May Propel Price To $3,100, Analyst Suggests
November 13 2023 - 8:00PM
NEWSBTC
Ethereum (ETH), the second-largest cryptocurrency, has seen a
significant price increase over the past month. The recent bullish
rush in the crypto market, coupled with BlackRock’s involvement,
has pushed ETH to its year-to-date high of $2,139. Ethereum
Outshines Bitcoin And Altcoins According to market data provider
Kaiko, ETH has outperformed BTC and many altcoins in recent weeks,
signaling a shift in market dynamics. Kaiko’s report highlights how
ETH struggled to gain momentum over the past year, despite
successful upgrades such as The Merge in April. However, the
sentiment around ETH changed dramatically when BlackRock filed for
a spot ETH exchange-traded fund (ETF), leading to a reversal in the
ETH to Bitcoin (BTC) ratio. Related Reading: XRP Price Path To $1:
Exploring Two Potential Outcomes From The $0.66 Resistance Level
The impact on the market was substantial, with ETH prices surging
above $2,000 for the first time since April. Additionally, daily
spot trade volumes reached $7 billion, the highest level since the
collapse of FTX. The ETH ETF narrative provided further
impetus to the ongoing rally, amplified by improved global risk
sentiment and declining US Treasury yields. The dominance of
altcoin + ETH volume relative to BTC has risen to 60%, marking its
highest level in over a year. During bull rallies, altcoin volume
typically increases relative to BTC. This surge in demand has
also led to rising leverage, as reflected in the recovery of ETH
open interest to early August levels. Notably, BTC open interest
has declined over the past month due to liquidations on Binance,
resulting in the Chicago Mercantile Exchange (CME) outpacing
Binance as the largest BTC futures market. Furthermore, ETH funding
rates, a gauge of sentiment and bullish demand, have reached their
highest levels in over a year, indicating a significant shift in
sentiment. In November, both BTC and ETH 30-day volatility rose to
40% and 50% respectively, following a multi-year low of around 15%
during the summer months. Crypto Expert Predicts ETH Breakout
Renowned crypto expert Michael Van de Poppe believes that ETH is on
the cusp of a significant breakthrough. According to Van de Poppe,
if Ethereum manages to surpass the crucial $2,150 resistance level,
it could signify the end of the bear market. Related Reading:
Bitcoin Sharks & Whales Do $2.2 Billion Selloff, But BTC Hangs
On At $37,000 Drawing a parallel with Bitcoin’s critical $30,000
barrier, Van de Poppe suggests that breaching this level could pave
the way for a substantial rally, potentially propelling Ethereum
towards the price range of $3,100 to $3,600. However,
Ethereum has yet to touch the $2,150 resistance line, as it faces a
pre-existing obstacle in the form of its yearly high of $2,139.
This pivotal level has halted the cryptocurrency’s bullish
momentum, acting as a formidable resistance. As a result,
Ethereum has been consolidating within a narrow range between
$2,050 and $2,100 for the past three days. The forthcoming days
will reveal whether Ethereum can overcome its immediate resistance
levels and establish a consolidated position above them.
Alternatively, it may face a fate similar to Bitcoin, which failed
to surpass the $31,000 level for over seven months before reaching
its current trading price of $36,000. Featured image from
Shutterstock, chart from TradingView.com
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