Ethereum\u2019s price continues to advance towards $4,000 despite market-wide liquidations and the U.S. SEC postponing a decision on Blackrock and Fidelity ETH ETF filings.\u00a0<\/p>\n
Ethereum traders have doubled bullish positions despite a major setback to institutional participation on the pioneer smart contract network and intense market volatility recorded on Mar. 6.\u00a0<\/p>\n
Market analysis explores how this show of conviction among speculative traders could impact the ongoing ETH<\/a> price rally in the near-term.\u00a0<\/p>\n Ethereum\u2019s price rose 9%, soaring from $3,500 to a peak of $3,900 within the daily timeframe on Mar. 6. The latest wave of ETH price rally is remarkable, as ETH defied downward pressure from two major bearish events.\u00a0<\/p>\n The crypto markets suffered intense volatility as investors who booked profits when BTC claimed a new all-time high on Mar. 5 inadvertently triggered over $1 billion<\/a> in liquidations.\u00a0<\/p>\n Previously, crypto.news also reported that<\/a> the U.S. SEC had postponed its decision on Blackrock and Fidelity\u2019s filings to launch an Ethereum ETF product.\u00a0<\/p>\n Despite two crucial events, ETH added another $48 billion to its market cap within the daily timeframe on Mar. 6, breaking past $3,900 for the first time in three years.\u00a0<\/p>\n It was previously anticipated that the SEC would provide a verdict as early as April 2024. Still, the latest development means that the May 7 deadline on Vanguard\u2019s application is now the most significant date for a possible ETH ETF approval verdict.\u00a0<\/p>\n The launch of the Ethereum ETF is expected to open the floodgates of institutional demand, as observed in the Bitcoin markets over the past month.\u00a0<\/p>\n Typically, news of such a verdict delay from the SEC, could put instant downward pressure on the price of the underlying asset. Remarkably, ETH defied the bears\u2019 soaring 9% within 24 hours of the postponement hitting the newsreels.\u00a0<\/p>\n The dominant bullish expectations and positive buzz surrounding the Ethereum ecosystem ahead of the upcoming Dencun upgrade were vital catalysts for ETH\u2019s resilient price performance on Mar. 6.\u00a0<\/p>\n Market data shows that ETH speculative traders have maintained their bullish conviction, even as BTC and other mega-cap altcoins experienced major liquidations.\u00a0<\/p>\n Santiment\u2019s Funding Rates metric presents a daily aggregate of fees paid between holders of perpetual futures contracts for a specific crypto asset. Fluctuations in funding rate trends offer insights into speculative traders\u2019 inclinations regarding short-term price movements.\u00a0<\/p>\n The chart below shows that the ETH funding rate remained at elevated positive values above 0.05% since Feb. 27, when ETH prices first broke above the $3,500 milestone price. <\/p>\n Despite the bearish headwinds on Mar. 6, ETH bulls did not exit their positions. Instead, they doubled down on bullish positions, driving the funding rate to a 2024 peak of 0.09%.\u00a0\u00a0<\/p>\n Elevated levels in funding rates suggest that traders are overwhelmingly confident of further short-term price upswings and, as a result, offer higher fees to keep contracts open.\u00a0<\/p>\n Unsurprisingly, ETH\u2019s price quickly soared above $3,900 within the subsequent 24 hours following the spike in funding rate. If this rare market trend persists, according to historical trends, it\u2019s only a matter of time before ETH\u2019s price breaks above the $4,000 mark.\u00a0<\/p>\n Ethereum\u2019s journey to having a listed ETF in the U.S. may have suffered a setback. However, its path toward reclaiming the $4,000 price level still appears unhindered, considering the growing bullish conviction observed in the ETH derivatives markets.\u00a0\u00a0<\/p>\n IntoTheBlock\u2019s global in\/out of money chart further affirms this stance: The latest price upswing on Mar. 6 effectively sent the percentage of profitable ETH holders above 97%.\u00a0<\/p>\n Profitable holders are often reluctant to sell during a bullish market phase, hence, ETH is likely to maintain a relatively high support level above $3,500 as it consolidates before its next leg-up.\u00a0<\/p>\n However, in the event of another bullish upswing, the bulls now have only the $3,992 resistance level to beat on its way to new peaks above $4,000.\u00a0<\/p>\n As seen above, 1.3 million addresses had acquired 493,080 ETH at the minimum price of $3,992. Hence, if Ethereum\u2019s price can establish a steady support level above that range, a move towards new peaks above $4,500 could be on the horizon as predicted.<\/p>\nEthereum price reclaims $3,900 despite bearish headwinds<\/h2>\n
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Bullish traders keep ETH funding rates elevated<\/h2>\n
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Ethereum price prediction: $4,500 retest only a matter of time?\u00a0<\/h2>\n
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