Ethereum Bulls Get Aggressive As Traders Set Sights on $4,000 Amid Market Frenzy
29 Février 2024 - 3:00PM
NEWSBTC
Ethereum has been exhibiting a robust and sustained upward trend,
showing its mettle in the volatile cryptocurrency market. At the
time of writing, the price of ETH was hovering around $3,743,
surpassing its moving averages with considerable bullish momentum.
The cryptocurrency community is now eagerly anticipating the breach
of the significant $3,500 price threshold, marking a potential
milestone for Ethereum’s continued ascent to the highly-coveted
$4,000 price tag. Related Reading: Bitcoin Ascent To $64,000 Causes
Coinbase To Crash – Here’s What Happened Notably, the current price
has surged well above the 50-day moving average, which stands at
approximately $2,700, underscoring the strength of the ongoing
bullish trend. Furthermore, the 100-day moving average, situated at
$2,400, serves as another crucial support level. Historically,
these key supports have proven instrumental in propelling Ethereum
prices higher upon retesting. ETH Surge: Price Correction In The
Offing? Ethereum (ETH) surged alongside Bitcoin (BTC) on February
28th, reaching within spitting distance of its all-time high of
$3,500. While bulls celebrate, a technical indicator hints at a
potential pause in the rally. The CryptoQuant Funding Rates metric,
reflecting fees paid in perpetual futures contracts, reveals a
significant spike for ETH on February 28th. Reaching 0.07%, it
marks the highest level since April 2021, exceeding the 0.06% peak
observed before ETH’s previous peak of $4,800 in November 2021.
Historically, such surges in funding rates have often preceded
price corrections. Source: CryptoQuant The high CryptoQuant Funding
Rates not only suggest a potential pause in the rally but also
raise concerns about the sustainability of the current momentum.
Typically, such dramatic surges indicate excessive bullish
sentiment and overheated markets fueled by highly leveraged long
positions. Crypto market cap now stands at $2.27 trillion. Chart:
TradingView.com There are two reasons why this scenario is
extremely complex. First off, in the event that prices turn around,
it exposes bulls to significant losses. Second, it raises the
possibility of a long squeeze, an uncommon situation in which
strong short-term selling pushes holders of long positions to
liquidate, thus quickening the price decrease. ETH up 16% in the
weekly chart. Source: Coingecko Imagine a domino effect: leveraged
long positions get called upon margin calls, forcing liquidation,
which triggers further selling, pushing prices down further, and
causing more margin calls. This cascading effect can lead to panic
selling and significant losses for overly optimistic investors.
Although there is no assurance that a prolonged squeeze will occur,
the increased funding rates serve as a harsh reminder of the
inherent risks that are associated with chasing a highly stretched
rally. 💤 A dormant pre-mine address containing 72 #ETH (243,771
USD) has just been activated after 8.6
years!https://t.co/K8769uQJ0w — Whale Alert (@whale_alert) February
28, 2024 Old Ethereum Whales Reappear, Sparking Crypto Speculation
In another development, a pre-mine Ethereum wallet that had
remained inactive for almost nine years has been reopened,
according to data released by the cryptocurrency tracker Whale
Alert. It has 72 ETH valued at $243,771 in it. This tracking
platform discovered that these 72 ETH funds had been moved to
another anonymous cryptocurrency wallet. In addition to this
wallet, according to recent sources, a number of dormant Ethereum
whales awoke in February and held premined Ethereum worth 100 ETH,
429 ETH, 3,465 ETH (valued at roughly $10.4 million), and 100 ETH.
They had all been dormant for about nine years. Featured image from
Pixabay, chart from TradingView
Quant (COIN:QNTUSD)
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De Mar 2024 à Avr 2024
Quant (COIN:QNTUSD)
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