TL;DR
- Ethereum (ETH) reached a new high of $2,735 before dropping to $2,665, reflecting a 1.25% increase in the last 24 hours.
- Open interest in ETH reached $14 billion, indicating active participation in the derivatives market, while short liquidations exceeded $23 million.
- From a technical standpoint, ETH has surpassed the 100-day Exponential Moving Average (EMA), which is at $2,685, but it faces resistance at the 200-day EMA, currently around $2,800.
Ethereum (ETH) has reached a new eight-week high, hitting $2,735 before dropping to $2,665, reflecting a 1.25% increase in the last 24 hours. This increase has been accompanied by a rise in trading volume, which has surpassed 100% and now stands at around 78%.
Open interest in Ethereum has reached $14 billion, demonstrating active participation from traders in the derivatives market. The recent price surge in ETH has also been driven by an increase in short liquidations, which have exceeded $23 million, as many short sellers have begun to close their positions and buy ETH.
From a technical perspective, Ethereum has surpassed the 100-day EMA, which is at $2,685, strengthening the bullish trend. However, the price faces resistance at the 200-day EMA, currently situated around $2,800. A decisive break above this psychological level could indicate a long-term bullish trend, potentially leading ETH to reach the Fibonacci level of 1.618, above $3,000.
Ethereum Could Be on an Upward Trajectory
Technical indicators are favorable, as the Relative Strength Index (RSI) has reached its highest level since June, indicating strong buying pressure. However, the RSI also shows that Ethereum is not overbought, suggesting there is still room for additional growth. In terms of profitability, 69% of all ETH addresses are now in profit, marking a 6% increase in the last week. In contrast, the number of addresses in loss has significantly decreased from 42 million to 35 million in just one week.
Despite the positive signs, there are also risks associated with the increase in open interest and the leverage ratio, which is nearing three-month highs. This could generate volatility in the market, especially if ETH experiences sharp price movements. However, the current market dynamics suggest that the cryptocurrency could be on an upward trajectory, with the potential to reach higher levels in the near future
