Ethereum

Ethereum Analyst Predicts $3,700 Once ETH Breaks Through Resistance

Published

2 hours ago

November 25, 2024

Coin2049 Newsletter

Ethereum has been trading at its highest levels since late July, hovering around $3,470. This marks a significant rebound for the second-largest cryptocurrency, which has managed to hold above the crucial 200-day moving average (MA) at $2,965. By maintaining this level, Ethereum confirmed a bullish price structure, paving the way for continued momentum as it approaches its next milestone—yearly highs near $4,000.

Top analyst and investor Carl Runefelt recently shared his technical analysis on X, pointing out that Ethereum’s price action has built a solid foundation for further growth. According to Runefelt, Ethereum is poised for a substantial rally once it breaks above key resistance levels, signaling increased confidence among traders and investors.

Ethereum Testing Crucial Supply

Ethereum is testing a crucial supply zone just below the $3,500 level, a key resistance that could propel the cryptocurrency to yearly highs in the coming days. This level has become a focal point for traders and investors, as breaking it would likely signal a bullish continuation of Ethereum’s recent momentum.

Top analyst Carl Runefelt recently shared his insights on X, emphasizing the significance of this resistance. According to his technical analysis, once Ethereum breaks through the $3,500 barrier, it could rapidly climb to $3,700, potentially within hours. The market sentiment surrounding Ethereum remains optimistic, with surging demand as a catalyst for further price gains.

Ethereum testing crucial resistance | Source: Carl Runefelt on X

Ethereum’s strength at this critical level is also reigniting speculation about a possible Altseason. If ETH continues its upward trajectory and attracts more capital, it could pave the way for other altcoins to follow suit. Historically, Ethereum’s price action has been a leading indicator for broader market movements, and this time appears no different.

Key Levels To Watch

Ethereum is trading at $3,470, hovering below the crucial $3,500 resistance level. This local high has become a key area of focus for traders and analysts, as breaking above it could set the stage for a significant rally. If Ethereum manages to push through this resistance with strength, it could trigger a breakout that propels the price toward $3,900 within days.

ETH testing crucial supply level | Source: ETHUSDT chart on TradingView

However, the market remains cautious about the potential risks associated with this pivotal moment. A failed breakout at the $3,500 mark could lead to sideways consolidation as Ethereum seeks stronger buying pressure to resume its upward momentum. In a more bearish scenario, a substantial correction could occur, driving ETH back to lower levels to establish a more solid base of support.

Ethereum’s Staking Weekly Net Inflows Increased Sharply, What’s Behind The Surge?

Published

3 hours ago

November 25, 2024

Coin2049 Newsletter

Interest in Ethereum, the second-largest cryptocurrency asset, is gaining momentum once again among retail and institutional investors, as evidenced by a robust increase in its net staking inflows in the past week in tandem with recent improvements in the price of ETH.

Consistent Growth In Ethereum’s Staking Net Inflows

In a positive development, Ethereum’s staking has attracted significant capital over the past week, leading to a surge in its net weekly inflows. Maartuun, a market watcher and analyst at leading on-chain data and analytics platform CryptoQuant, reported the development, reflecting growing commitment.

The spike in staking activity indicates that many investors are interested in supporting Ethereum’s proof-of-stake (PoS) ecosystem while receiving passive returns. It also bolsters ETH’s robust security and position in the cryptocurrency landscape.

Data shared by the analyst shows that Ethereum staking saw a net influx of +10,000 ETH over the past week, with 115,000 ETH being deposited and 105,000 ETH being withdrawn. This shows that deposits have surpassed withdrawals once again after months of net outflows, marking a significant change. With the total staked ETH rising again, it indicates renewed confidence and optimism in staking as a long-term strategy, which could be crucial in strengthening ETH’s ecosystem.

Addressing the components behind the surge, Maartuun has pointed out a mix of possible factors. These include rising ETH prices, improved staking infrastructure like liquid staking options, and institutional players entering the market.

Furthermore, the expert highlighted that this surge in net inflows might be a reaction from long-term investors to Ethereum’s stability after the merger and their increasing trust in the ecosystem.

In the event that the current rate of deposits keeps up, Maartuun is confident that the development could limit the availability of ETH in the market, which might affect price movements. “Overall, this recent inflow is a positive sign for Ethereum’s ecosystem and long-term growth,” he added.

ETH’s Open Interest Reaches New Milestone

Ethereum has been seeing major advancements lately in several key metrics, such as its Open Interest (OI). ETH’s open interest experienced a notable uptick in the past few days, surging to a new all-time high.

A report from CryptoQuant reveals that ETH’s open interest is valued at over $13 billion, representing an increase of more than 14% in the past four months. Additionally, funding rates demonstrate a positive trend, signaling that long-position traders dominate the market. This spike shows that interest in ETH’s derivative markets is rising sharply and growing market sentiment that supports price increases in the short term.

CryptoQuant also revealed that Ethereum’s estimated leverage ratio has hit a new all-time high, reaching +0.40 for the first time in history. This metric, which is determined by dividing the open interest by the exchange’s coin reserves, suggests a huge rise in leverage positions, indicating increased risk-taking by traders in derivatives trading.

Featured image from Unsplash, chart from Tradingview.com

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Ethereum

Ethereum Price Repeats Bullish ‘Megaphone’ Pattern From 2017

Published

1 day ago

November 24, 2024

Coin2049 Newsletter

Este artículo también está disponible en español.

The Ethereum price has formed a key technical pattern reminiscent of the one observed in 2017 when the cryptocurrency embarked on a major bull rally. According to a crypto analyst, this pattern, known as the ‘Bullish Megaphone‘, could signal a possible price rise to $10,000 for ETH.

Bullish Megaphone Sets Stage For Ethereum Price Rise To $10,000

A Blockchain and crypto technical analyst, identified as ‘EtherNasyonal,’ on X (formerly Twitter), has predicted that the Ethereum price could soon surpass $10,000. According to the analyst, Ethereum‘s price action currently showcases a historical chart pattern, the Bullish Megaphone, observed during the 2016 to 2017 bull market.

The Bullish Megaphone pattern is a technical indicator consisting of two higher highs and two lower lows, often indicating a potential uptrend continuation for a cryptocurrency. This technical pattern is considered bullish when a cryptocurrency’s price breaks above the trend line with increasing volume.

Looking at the analyst’s Ethereum price chart from 2016 to 2017 and another for 2024 to 2025, the Bullish megaphone pattern has formed in both bull cycles. Moreover, at the end of the key technical pattern in 2017, the Ethereum price skyrocketed to new price levels, surpassing the $1,200 mark by 2018.

EtherNasyonal has suggested that as Ethereum repeats this pattern in the current bull market, it could signal a similar massive price surge, with a potential rally above $10,000. As of writing, CoinMarketCap reveals that the price of Ethereum is trading at $3,353, marking a 7.24% surge in the last seven days. At its current price, a rally to the $10,000 mark would represent a 198% increase for Ethereum, highlighting a substantial surge in value.

ETH is currently trading at $3,351. Chart: TradingView

The analyst has also noted that altcoins will likely follow Ethereum’s bullish momentum and experience a similar uptrend. This price rally in ETH could further impact the future trajectory of altcoins in the crypto market this bullish cycle.

Is The Altcoin Season Here?

Historically, Ethereum has been a significant catalyst or determining factor to the start of the highly anticipated altcoin season. While Bitcoin’s dominance tends to decline significantly around this period after experiencing a remarkable bull run, altcoins typically follow this bullish trajectory, with Ethereum taking the lead as it trails behind Bitcoin’s price rally.

MikyBull Crypto, a prominent analyst on X, declared that the altcoin season for this current bull cycle has officially begun. For clarity, the altcoin season is after Bitcoin’s consolidation phase, which follows a rally, where smaller-cap cryptocurrencies begin a strong market rally.

Deribit Moves $783M in Ethereum To Cold Storage: A Bullish Signal for ETH?

Published

2 days ago

November 23, 2024

Coin2049 Newsletter

While Ethereum seems to have begun its own major rally, the asset has recently experienced significant activity on the Deribit Options Exchange which begs the question of what it means for ETH’s price.

A CryptoQuant analyst known as Amr Taha detailed these developments in a post on the CryptoQuant QuickTake platform. The analysis focused on substantial outflows from the exchange to cold wallets, highlighting potential implications for market sentiment and liquidity.

ETH Netflows On Deribit And The Implications

According to Taha, the Deribit Options Exchange recorded a notable transaction involving 233,000 ETH transferred to a cold wallet. Valued at approximately $783 million, the transaction was executed at an average price of $3,350 per Ethereum.

Ethereum exchange netflow on Deribit.

This was not limited to Ethereum alone—Bitcoin also witnessed a similar outflow, with 31,000 BTC worth $3.038 billion moved to cold storage. These transfers have sparked speculation about the motivations behind such activity and their potential impact on the broader market.

Bitcoin exchange netflow on Deribit.

As a result, the CryptoQuant analyst highlighted four major implications of this movement. First, the reduction in selling pressure is notable. Assets stored in cold wallets are less likely to be sold immediately, which can decrease liquidity on exchanges.

Taha noted that this scenario may contribute to price stability or even further boost the bullish trend in the market if demand remains steady or increases.

Another key takeaway from these transactions is the possibility of institutional accumulation. Such large-scale transfers often indicate that institutional investors or high-net-worth individuals are confident in Ethereum’s long-term value.

Furthermore, Taha highlighted Deribit’s strategy of moving these funds as part of a risk management approach. The analyst wrote:

Moving assets to cold storage is a security practice to minimize exposure to hacking risks. It also reflects a cautious approach, likely due to regulatory scrutiny or anticipated market volatility.

Additionally, Taha highlighted that this move could also have impact on market sentiment where by traders could interpret these transactions as bullish, “leading to increased buying activity.”

Ethereum Market Performance

Meanwhile, Ethereum currently trades above the $3,300 mark following an increase of 8.2% in the past week and 1.3% in the past 24 hours. The asset’s market cap has also significantly surged alongside its price with a current valuation nearing $400 billion.

Ethereum (ETH) price chart on TradingView

According to renowned crypto analyst known as EᴛʜᴇʀNᴀꜱʏᴏɴᴀL on X, Ethereum current price chart appears to be mirroring that of 2016-2017 where it experienced a “mega bull” run.

According to the analyst, “altcoins will follow” as Ethereum continues to increase.

#Ethereum $10k+ step by step!$ETH repeats the bullish megaphone pattern it drew while heading towards the 2016-2017 mega bull period, before the 2024-2025 mega bull period.#Alts will follow! pic.twitter.com/VRVI8lwnsS

— EᴛʜᴇʀNᴀꜱʏᴏɴᴀL (@EtherNasyonaL) November 22, 2024