Fun

3 reasons why Ethereum (ETH) price could hit $4K in the short-term

News Feed - 2024-03-06 04:03:02

Nancy Lubale4 hours ago3 reasons why Ethereum (ETH) price could hit $4K in the short-termDespite Bitcoin’s sell-off at $69,000, ETH continues to show strength, and bulls appear to be targeting the $4,000 level.3087 Total views3 Total sharesListen to article 0:00Altcoin WatchOwn this piece of crypto historyCollect this article as NFTJoin us on social networksEther (ETH) rallied to a new year-to-date high of $3,822 on March 5 after rallying 8% over the last 24 hours. The second largest cryptocurrency by market capitalization is up 15% over the last seven days and 132% over the last 6 months.


Data from Cointelegraph Markets Pro and TradingView show Ether’s price was hovering around $3,796, about 28% shy of its all-time high of $4,891 set on Nov. 26, 2021.ETH/USD daily chart. Source:TradingView


Accompanying ETH’s rally is a 68% leap in daily trading volume, currently at $33.29 billion. With a market capitalization of $453 billion, Ether cements its position as the second most valuable cryptocurrency, according to CoinMarketCap.


Apart from the uptrend in the wider crypto market fueled by increased inflows into spot Bitcoin ETFs and the upcoming Bitcoin supply halving, other fundamental factors and on-chain metrics back Ethereum’s uptrend.Reducing supply on exchanges


One factor supporting Ether’s upside is reducing supply on exchanges. Data from on-chain market intelligence firm Glassnode shows ETH balance on exchanges reached a 20-month low of 13.14 million ETH, after dropping 7.7% over the last 90 days.ETH supply on exchanges. Source: Glassnode


The total balance between inflows and outflows in and out of all known exchange wallets shows a steep decline since October 2023, when withdrawals from the trading platforms began to surge. This drop accompanies a 130% rise in Ether’s price over the same time period.


Decreasing ETH balances on exchanges simply means investors could be withdrawing their tokens into self-custody wallets, indicating a lack of intention to sell in anticipation of a price increase in the future.


This is explained by a spike in accumulation by large holders over the last few weeks. More data from Glassnode shows that wallets holding $100,000 or more worth of ETH have been on the rise since the start of February.Number of ETH wallets with balances more than $100K. Source: Glassnode


The chart above shows that wallets holding $100,000 or more have increased from 94,620 on Jan. 1 to 141, 406 on March 4 This means that whales have not sold on the latest rally in ETH but have continued to accumulate, suggesting most want to position themselves for more gains.Ethereum staking numbers rise


Also contributing to the decreasing ETH tokens available for trade is the increasing amount of Ether staked on the Beacon Chain. According to data from Dune Analytics, over $31.58 million ETH, worth $119.8 billion at current rates, are now being staked on Ethereum"s proof-of-stake layer protocol.


This means 26.3% of ETH supplies have been staked and unavailable in the market, with over 987,000 individual validators involved.ETH staking data. Source: Dune Analytics


Related:Bitcoin price hits a new all-time high


Staking on Ethereum has been further facilitated by liquid staking solutions like Lido, Rocket Pool and EtherFi, which allows for the staking of amounts less than 32 ETH and enables the use of staked assets as collateral in DeFi.


According to data from BlockBeats, the total value locked on EtherFi has crossed the $2 billion mark, highlighting the growing popularity and adoption of Ethereum liquidity protocols.Ethereum’s open interest nears the 2021 high


Increased demand for leverage resulted in a surge in ETH futures open interest (OI), which sat around $11.98 billion, edging closer to the $13 billion peak witnessed on Nov. 9, 2021.Ether futures aggregate open interest, USD. Source: Coinglass


Data from Coinglass shows that Ether futures OI broke above $8 billion on Feb. 12, being pinned under this level for more than two years. From there, the OI has jumped nearly 50% in less than two weeks, suggesting increased demand for leveraged ETH positions.


Currently, Ethereum’s on-chain and derivatives markets reflect investors’ optimism and expectation for a a spot Ether ETF approval The upcoming Dencun upgrade could also be lending some bullish tailwinds to ETH price.


This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Cryptocurrencies# Altcoin# Ethereum# Bitcoin Price# Markets# Ethereum Options# Ethereum Price# StakingAdd reactionAdd reaction

News Feed

Belgium Energy Minister’s Twitter Account Hacked- Fake Ethereum Giveaway Advertised
Belgium Energy Minister"s Twitter Account Hacked- Fake Ethereum Giveaway Advertised The official Twitter account of Belgium’s Minister of Energy was the re
NFTs poised for comeback despite sales drop say execs
Ezra Reguerra1 hour agoNFTs poised for comeback despite sales drop say execsDespite a 45% drop in NFT sales during Q2 2024, Web3 professionals remain optimistic about the future of non-fungible tokens.393 Total viewsList
24 Hours of Le Mans Endurance Race Launches NFT Collection Crafted by the Automobilist
24 Hours of Le Mans Endurance Race Launches NFT Collection Crafted by the Automobilist On August 17, 24 Hours of Le Mans, the endurance sports car race held annu
The Cardano Anomaly: ADA Quiet Now, But The Math Says Otherwise
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Apple’s CEO Owns Crypto – Tim Cook Thinks ‘It’s Reasonable to Own as Part of a Diversified Portfolio’
Apple"s CEO Owns Crypto - Tim Cook Thinks "It’s Reasonable to Own as Part of a Diversified Portfolio" The CEO of the tech giant Apple, Tim Cook disclosed that he owns cryptocurre
Elon Musk to ban Apple devices if OpenAI is integrated with OS
Brayden Lindrea7 hours agoElon Musk to ban Apple devices if OpenAI is integrated with OSMusk called it an “unacceptable security violation” and even said the Apple block could extend to visitors to his company’s he
Price analysis 6/14: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, SHIB, AVAX
Rakesh Upadhyay7 hours agoPrice analysis 6/14: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, SHIB, AVAXBitcoin and several altcoins are getting sold into rallies, increasing the risk of a downside breakdown.3481 Total views10
Tom Blackstone5 hours agoUnstoppable Domains launches instant messaging with XMTPUnstoppable Domains now allows owners of .crypto, .polygon and other Web3 usernames to send messages to each other through multiple messagi
Crypto exchanges to meet Nigerian SEC chief for regulatory talks
Amaka Nwaokocha14 hours agoCrypto exchanges to meet Nigerian SEC chief for regulatory talksThe meeting is expected to ignite positive changes that benefit all crypto stakeholders in Nigeria and internationally.1607 Total
Biggest Movers: SHIB Surges 10% on Saturday, as NEAR Hits 2-Week High
Biggest Movers: SHIB Surges 10% on Saturday, as NEAR Hits 2-Week High SHIB was trading by as much as 10% higher on Saturday, as crypto markets were mainly in the green. NEAR was a
Criminals Target Privacy Coins: How To Avoid Downloading Fake Wallet Apps
Criminals Target Privacy Coins: How To Avoid Downloading Fake Wallet AppsReports in the past few weeks detail that bad actors are targeting two privacy coin projects, Monero and Zca
William Suberg9 hours agoBTC price bounces 3% post-Binance amid call for Bitcoin bulls to ‘step in’Bitcoin is due to spend some time ranging before an “impulse” move ensues, bullish BTC price analysis predicts.38