Why Is Ethereum Up Today? Will It Hit $10,000?

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As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of bull and bear runs. The recent surge in Ethereum (ETH) price is reminiscent of the early days of Bitcoin, a time when the market was filled with potential and uncertainty.

Over the past day, the value of Ethereum (ETH) has surged ahead by approximately 5%, surpassing the $3,500 mark. Meanwhile, Bitcoin (BTC) has been holding steady near the $98,500 level, indicating consolidation. As a result, investors are now focusing on Ethereum as Bitcoin encounters resistance at the significant $100,000 threshold.

After Ethereum’s price increase, coins like Ripple‘s XRP, Cardano (ADA), Avalanche (AVAX) have shifted their direction for significant growth. Keeping an eye on the ETH/BTC correlation will be essential to predict the upcoming trend.

Ethereum Futures Open Interest Hits Fresh All-Time High

According to Velte Lunde, K33’s Research Head, the number of open contracts for CME’s ether futures has almost doubled following the recent election, hitting record highs. In the last few days, the cost of entering into ether futures contracts has actually gone above that of Bitcoin futures, indicating a notable change in market trends. This is a significant shift in market dynamics.

During the cryptocurrency market surge triggered by Donald Trump’s election win, Ethereum has not performed as well as other altcoins. Despite briefly reaching a high of $3,400 earlier this month, the price of Ethereum subsequently dropped back to hold at around $3,000, partly due to large Ethereum investors selling off their holdings.

Despite dipping to lows, Ethereum surged by 14% over the last week due to escalating Ethereum futures open interest. Notably, on-chain analyst Maartum observed a significant shift in Ether, with approximately 10,000 ETH moving into wallets. This transfer resulted from the deposition of around 115,000 ETH and withdrawals totaling 105,000 ETH.

After several months of withdrawals, this change represents a significant move towards better and more favorable conditions. Should this pattern persist, it might decrease the total amount of ETH available for trading, which could influence its market prices, according to the analyst’s observation.

ETH Price to Hit $10,000?

The price of ETH is exhibiting significant power on its technical chart, successfully surpassing the barrier at $3,375. Many crypto experts and enthusiasts view $4,000 as the initial goal for Ethereum. Furthermore, some prominent analysts have also predicted a target of $6,500 by Q2 2025’s end.

According to information from Coinglass, the open interests for Ether increased by approximately 5.74%, reaching a total of around $21.73 billion. Furthermore, within the past 24 hours, liquidation events amounted to about $47.5 million. This figure includes $24.47 million from short liquidations and another $23 million from long liquidations.

Furthermore, crypto expert Michael van de Poppe pointed out that Ethereum’s price has not yet risen significantly. He emphasized that for Ethereum to do so, it must first overcome a crucial resistance barrier. According to his analysis, the ETH/BTC pair needs to surpass the 0.036 threshold and then establish this level as support. Once this is achieved, an Ethereum price surge towards $10,000 could commence promptly.

#Ethereum didn’t break upwards yet.

It needs to break 0.036 BTC and flip that level for support.

Once that happens, I’m assuming that the #Altcoins will go way higher.

— Michaël van de Poppe (@CryptoMichNL) November 25, 2024

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2024-11-25 15:52