Ethereum Holds Steady as Its Popularity in the Market Persists
Ethereum (ETH) came close to its 2024 peak on February 12, reaching a price of $2,633, while Bitcoin (BTC) surpassed $50,000 for the first time since 2022. Although Bitcoin received significant media attention for breaking the $50,000 barrier, Ethereum bulls are strategically positioning themselves for a similar breakout. The question now is whether ETH will reclaim $3,000 in the coming days.
Traders in the Ethereum derivatives market have increased their bullish bets, as the price action of both Ethereum and Bitcoin has been closely correlated for many years. This correlation has fueled optimism that BTC hitting the $50,000 milestone could pave the way for a bullish upswing in ETH.
The funding rate in the ETH derivatives market has witnessed a notable increase, indicating that speculative traders are placing more leveraged bets on an imminent ETH price upswing. The funding rate rose to 0.4% on February 13, the highest in over 40 days, signaling a strong bullish outlook and the potential for an Ethereum rally towards $3,000.
Furthermore, US-based corporate entities are ramping up their purchases of ETH as they seek approval for an ETH spot ETF in the first half of 2024. This institutional buying pressure is reflected in the Coinbase Premium index, which tracks the difference in Ethereum prices between Coinbase Pro and Binance. The positive values of the Coinbase Premium index indicate that the buying pressure from whales on Coinbase Pro has exceeded retail activity on Binance, a pattern often seen before major ETH price rallies.
With the combined bullish sentiment among speculative traders and the buying pressure from whales, it is likely that Ethereum price will continue to rise towards its next target of $3,000. However, there is a major resistance level at $2,750 that the bulls must overcome. If they can surpass this level, it could generate the momentum needed to reach the $3,000 target.
On the flip side, if the bears manage to push the price below $2,000, it could trigger a negative trend. However, this scenario seems unlikely in the short term, as there is strong support around the $2,350 level, defended by holders who have acquired ETH at an average price of $2,300.
In summary, the rising funding rates and buying pressure from US-based whales have set Ethereum on an upward trajectory. Based on historical patterns, it is likely that Ethereum price will continue to rise towards $3,000. However, the bulls must overcome the resistance at $2,750 to maintain this momentum.
