Investors put $400 in Raiders.
Ethereum (ETH) has once again reached a new peak in price, hitting $3,530 at around 06:00 GMT on March 4. This surge in price has led strategic traders to place bullish bets early, taking advantage of the positive momentum before ETFs open for trading.
Despite the increase in price, ETH still appears undervalued when compared to the amount of capital that has been invested in the derivatives markets over the weekend. With Ethereum’s open interest currently at historic highs, there is potential for the bulls to drive the rally above $4,000.
Over the weekend, Ethereum’s open interest rose by $400 million, indicating that speculative traders have been doubling down on their bullish positions. This increase brings the total open interest to a 3-year peak of $11.8 billion as of March 4.
There is speculation that as Bitcoin dominance declines, Ethereum could gain more traction as investors turn to altcoin markets. If this trend continues and Bitcoin ETFs experience a buying frenzy, it is likely that ETH price will see another increase towards $4,000.
As of March 4, Ethereum price is trading above $3,500, showing a 5% increase from the 24-hour low. The $400 million capital inflows into ETH derivatives markets over the weekend suggest that Ethereum is poised to attempt a break above $4,000 for the first time in 3 years.
However, historical data shows that ETH may face resistance around the $3,650 area. If the bulls can overcome this resistance, it could generate stronger bullish momentum for a retest of $4,000.
On the other hand, if the bears regain control and force a sharp downswing below $3,000, it could indicate a shift in market sentiment. However, the presence of a support buy-wall at the $3,100 territory makes this scenario unlikely.
In conclusion, Ethereum’s price is experiencing positive momentum, and there is potential for it to reach $4,000 this week. However, there are resistance levels to overcome, and market dynamics could play a role in determining the outcome.
