Ethereum
Ethereum Price Set to Hit $4,000 as Traders Invest $400 Million
The price of Ethereum (ETH) hit another 2024 high at $3,530 around 06:00 GMT on March 4, as strategic traders look to place bullish bets before ETFs open for trading.
Despite the rise in prices, ETH the price still appears undervalued relative to the value of capital flowing into derivatives markets over the weekend.
With Ethereum open interest currently at all-time highs, can the bulls capitalize on the positive momentum to drive the rally above $4,000.
Ethereum Open Interest Increased by $400 Million Over the Weekend
Ethereum price appears poised for another bullish outing this week. The quick decline of Bitcoin dominance (BTC.D.) sparked speculation that Ethereum could gain more ground as investors began to look more into the altcoin markets.
Unsurprisingly, speculative traders spent the weekend piling up bullish bets on the ETH futures markets. The open interest charts of crypto derivatives analysis platform Coinglass present a total of the total value of funds currently invested in derivative contracts for a specific crypto asset.
As shown below, ETH open interest stood at $11.4 billion as of market close on March 1. This figure has now increased by $400 million over the weekend, reaching a 3-year high of $11.8 billion at the time of writing on March 4.
Ethereum (ETH) Open Interest vs. Price | Change machine
In fact, this implies that even though ETH prices fell by 6%, from $3,500 to $3,300, speculative traders continued to double down on their bullish positions. Furthermore, the
With over 97% of current BTC holders now widely expected to make profits, a number of them will likely continue to reinvest some of their gains into altcoins, as observed last week.
If this scenario comes true, and Billion-Dollar Bitcoin ETF Buying Frenzy once again causes BTC prices to skyrocket in the coming week, ETH price has a chance to advance further towards $4,000.
Ethereum Price Prediction: Can ETH Hit $4,000 This Week?
At the time of writing on March 4, Ethereum price is currently trading above $3,500, up 5% from the 24-hour low of $3,365. Drawing conclusions from $400 million inflows into ETH derivatives markets over the weekend, Ethereum price appears poised to make another attempt at surpassing $4,000 for the first time in 3 years .
However, the historical accumulation trend shows that ETH is facing strong resistance around the $3,650 area.
IntoTheBlock input/output data shows that 1.1 million addresses acquired 205,890 ETH at the maximum price of $3,572. Given that they have been at a loss since December 2021, many of these investors may exit as ETH approaches its break-even point.
But if the bulls manage to scale this selling wall, it could generate stronger bullish momentum for a retest of $4,000, as expected.
Alternatively, the bears could regain control of the markets if they manage to force a sharp decline below $3,000. But currently, this seems far-fetched considering the impending support buying wall set at $3,100.