Ethereum
Ethereum Consolidates But Open Interest Points to Potential Breakout
Ethereum is now demonstrating steady price growth, posting a 6% rise in the past day as the broader cryptocurrency market rallied. This upward momentum follows news of a US executive order establishing a national digital asset stockpile, contributing to a positive market environment.
Amid this backdrop, CryptoQuant analyst ShayanBTC has provided a fresh perspective on Ethereum’s current trajectory. Shayan highlights an interesting divergence between the increasing open interest in Ethereum futures and the price, which has yet to reach previous highs.
Growing Futures Market and Divergent Price Action
According to Shayan in a post recently uploaded on the CryptoQuant QuickTake platform, Ethereum’s open interest—an indicator of active futures contracts—has surged to its highest levels in recent weeks, indicating heightened market participation and growing interest among traders.
The analyst notes that the rise in ETH’s open interest and slow price response suggests a disconnect between market sentiment and price performance. While futures traders appear optimistic, this optimism has not yet translated into Ethereum breaking key resistance levels. The analyst wrote:
Interestingly, there is a divergence between Ethereum’s price and futures market activity. Despite the significant increase in open interest, the price has yet to break its previous highs, showcasing a potential imbalance between market expectations and price action.
Shayan also notes that elevated open interest could lead to volatility. Historically, large buildups in open interest have been followed by significant price swings as positions are liquidated.
Although the direction of the next move remains uncertain, current activity and sentiment lean toward a potential bullish breakout. Shayan suggested that if Ethereum can surpass critical resistance, it could pave the way for a more prolonged rally.
Market Concerns And Bearish Indicators
In contrast, another CryptoQuant analyst, Darkfost, presents a more cautious outlook. Darkfost points to a range of bearish factors, including increasing Ethereum inflows and reserves on Binance.
According to the data shared by Darkfost, since September 2024, Ethereum inflows have consistently outpaced outflows, leading to a rise in exchange reserves. This trend reflects selling pressure, as more Ethereum is moved to exchanges, potentially indicating an intent to sell rather than hold.
Additionally, Binance’s taker buy-sell ratio has remained bearish for months, showing a consistent dominance of sell orders. Darkfost reveals that the shift in these metrics suggests that some investors may be locking in profits or reallocating capital elsewhere, leading to a more cautious market sentiment.
Featured image created with DALL-E, Chart from TradingView
Ethereum
Justin Sun’s Grand Strategy For Ethereum Price: $10,000 Target
As the Ethereum price lingers below its all-time highs (ATHs), TRON founder Justin Sun has emerged with a bold vision aimed at revitalizing the altcoin’s value.
Sun’s Vision For The Ethereum Price
In a recent social post on X (formerly Twitter), Sun proposed a plan that he believes could propel the Ethereum price to unprecedented heights, targeting a price of $10,000. Sun’s strategy hinges on a radical overhaul of the Ethereum Foundation (EF) and the Ethereum protocol itself.
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The TRON founder asserts that under his leadership, immediate and decisive actions could almost double the current price peak for ETH. One of his primary proposals is to halt the sale of ETH for a minimum of three years. By doing so, Sun aims to stabilize the currency’s supply and bolster market confidence.
To cover operational costs during this period, Sun suggests leveraging Aave (AAVE) lending, staking yields, and stablecoin borrowing, thereby ensuring that the ETH supply remains intact while aligning with deflationary goals.
In addition to halting sales, Sun proposes imposing significant taxes on Layer 2 (L2) projects. He believes this move could generate at least $5 billion annually for Ethereum, either in stablecoins or tokens.
The revenue from these taxes would be utilized to repurchase and burn ETH in a decentralized manner, further enhancing scarcity and potentially driving up demand.
Major Staff Cuts To Transform Ethereum Foundation Into Meritocracy
In his social media post, Sun also emphasized the need to streamline operations within the Ethereum Foundation. He suggests a significant reduction in staff, retaining only the most capable team members.
Those who remain would receive substantial salary increases, transitioning the Ethereum Foundation into a merit-based organization that rewards high performance.
Furthermore, the TRON founder calls for adjustments in node rewards and a stronger focus on fee-burning mechanisms. By reducing node rewards, Sun believes Ethereum can solidify its deflationary status, reinforcing its position as a store of value.
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The focus, according to Sun, would shift exclusively toward Layer 1 (L1) development, prioritizing scalability, security, and broader adoption.
Sun is confident that these initiatives could lead the Ethereum price to surpass $4,500 within the first week of implementation, laying the groundwork for long-term success.
While this only represents Sun’s vision for the Ethereum price, any of these proposals, if viable for driving another leg up of the altcoin, could ultimately be adopted by the co-founders or the developers of the platform.
As of this writing, the Ethereum price hovers around the $3,200 mark, reflecting a loss of 4% over the past 24 hours. This decline has widened the gap between the current price and its ATH of $4,878, representing a difference of 34.5%.
Featured image from DALL-E, chart from TradingView.com
Ethereum
Ethereum Holders Ramp Up Accumulation As ETH Price Fluctuates, Is A Rebound Possible?
Ethereum‘s price performances in the ongoing bull cycle may be lagging behind other notable crypto assets like Bitcoin, Solana, and XRP, which have formed new all-time highs. However, optimism about its price prospects still lingers as evidenced by a persistent accumulation of the digital asset
Confidence In Ethereum Growin Among Investors
Despite Ethereum’s price struggling to initiate a major rally, an encouraging sentiment has been spotted among investors. Recently, ETH investors have ramped up accumulation at a significant rate over the last two weeks.
Kyle Doops, a technical expert and host of Crypto Banter Show shared the development after examining the key Ethereum New Accumulation metric. Data from Kyle Doops reveals a surge in wallet activity, with both small and large-scale investors increasing their ETH holdings.
The expert stated that this trend reflects unwavering confidence from investors in spite of recent market fluctuations. Furthermore, the expanding interest suggests strong faith in ETH’s potential in the long term, which is attracting many institutional and retail participants.
Ethereum’s network expansion and dominance of the Decentralized Finance (DeFi) and Non-Fungible Tokens (NFT) sectors may have played a pivotal role in the persistent accumulation. Meanwhile, if the accumulation phase extends, it could act as a precursor for the altcoin’s next major price movement.
However, waning market performance threatens its uptrend in the short term. Even in the face of market uncertainty, Kyle Doops claims that Ethereum’s future appears increasingly promising, demonstrating his optimism about the asset’s capability.
This robust investor activity is also indicated by the Ethereum Estimated Leverage Ratio metric, which has been climbing for some period. A rise in this key metric indicates heightened risk as traders take on more positions with high leverage.
The surge in high-leverage positions appears to have been climbing as ETH consolidates between the $3,200 and $3,500 price range. Given the prolonged stasis within the price range, Kyle Doops believes that a bullish breakout is likely at this point.
However, he has urged investors to be cautious as high leverage may cause liquidations and volatility as seen in the past whereby the development has led to a volatile price action for the altcoin.
A Strong Rally For ETH On The Horizon?
ETH continues to face significant resistance at the $3,500, raising uncertainty about its next price direction. However, market expert and trader Milkybull has expressed his confidence in ETH’s prospects, predicting a move to unprecedented levels.
Examining ETH’s 1-month chart, the analyst claims that the infamous rise of ETH that will push it to the $12,000 milestone is gathering steam. His bold forecast is supported by a Rising Wedge pattern, which typically oversees notable price spikes.
At the time of writing, ETH was trading at $3,381, demonstrating an almost 5% rise in the last 24 hours. Investors are betting significantly on the renewed upward momentum as trading volume has increased by more than 60% in the past day.
Featured image from Unsplash, chart from Tradingview.com
Ethereum
Ethereum Price Eyes $4,000 With Rising Channel Pattern
Crypto analyst BasicTrading has revealed a bullish pattern that has appeared for the Ethereum price, which hints at a rally to $4,000. This again provides some optimism concerning ETH, which has continued to underperform in this market cycle.
Ethereum Price Eyes $4,000 With This Bullish Pattern
In a TradingView post, BasicTrading revealed that a breakout to $4,000 looks to be on the horizon for the Ethereum price following the formation of a rising channel pattern. This bullish prediction came as the analyst noted that ETH had been retesting the previous all-time high resistance and was not able to break it.
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However, this time, it could be different following the rising channel pattern. The analyst added that with the bullish break and retest and Ethereum price action, the breakout is about to happen. With Ethereum likely to break this psychological $4,000 resistance level soon enough, the analyst suggested that this could ultimately pave the way for ETH to reach and possibly surpass its current ATH of $4,800.
BasicTrading remarked that the sky is the limit for the Ethereum price if it manages to break above its current ATH. Interestingly, the crypto analyst raised the possibility of ETH rising to between $20,000 and $25,000 if it replicates its historical performance from previous bull cycles. This price range represents the upper resistance trendline of the rising channel.
However, the analyst stated that the Ethereum price must first achieve a clear breakout of its current ATH before a rally to as high as $25,000 can become a possibility. This bullish projection for ETH comes just days after crypto analyst Ali Martinez explained why it wasn’t time to give up on Ethereum despite its underperformance in this market cycle. Martinez mentioned that a decisive breakout above $4,000 could send ETH to $7,000.
ETH To Reach Five Digits In This Bull Run
Crypto analyst CrediBULL Crypto has also backed BasicTrading’s bullish outlook as he predicted that the Ethereum price would at least reach $10,000 in this market cycle. The analyst asserted that ETH will come back with a “vengeance” in the coming months. He added that $10,000 is the bare minimum once Ethereum breaks out. CrediBULL Crypto further opined that $20,000 is certainly not unreasonable by the end of this cycle.
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Crypto analyst Mikybull Crypto also provided a bullish outlook for the Ethereum price, stating that ETH’s hated rally that will bring it to $12,000 is loading. He further remarked that the chart is giving market participants a glimpse and that patience is all it takes.
At the time of writing, the Ethereum price is trading at around $3,400, up over 5% in the last 24 hours, according to data from CoinMarketCap.
Featured image from iStock, chart from Tradingview.com
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