ethereum (eth) price hit another 2024 high at $3,530 around 06:00 GMT on March 4, as strategic traders look to place bullish bets early before ETFs open trading.
Despite the price increase, the price of eth still appears undervalued relative to the value of capital funneled into derivatives markets over the weekend.
With ethereum open interest currently trending towards all-time highs, will the bulls be able to ride the positive momentum to push the rally above $4,000?
ethereum open interest surged by $400 million over the weekend
ethereum price appears poised to record another bullish breakout this week. The rapid decline in bitcoin (btc.D.) dominance sparked speculation that ethereum could gain more traction as investors began to increasingly lean towards altcoin markets.
As expected, speculative traders spent the weekend piling up bullish bets on the eth futures markets. crypto derivatives analysis platform Coinglass's open interest charts present an aggregate of the total value of funds currently invested in derivatives contracts for a specific cryptocurrency asset.
As shown below, eth open interest stood at $11.4 billion at the close of trading on March 1. That 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.
Effectively, this implies that while eth prices retreated 6% from $3,500 to $3,300, speculative traders continued to double down on their bullish positions. Furthermore, the
There is widespread anticipation that, with over 97% of current btc holders making profits, several of them are likely to continue to reinvest some of their profits into altcoins, as seen last week.
If this scenario plays out, and the multi-billion dollar bitcoin ETF buying frenzy sends btc prices skyrocketing again over the next week, eth price has a chance to make another jump towards the $4,000.
ethereum Price Prediction: Can eth Reach $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. Based on inferences from the $400 million capital inflows into the eth derivatives markets over the weekend, ethereum price looks set to make another attempt to break $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 money in/out data shows that 1.1 million addresses had acquired 205,890 eth at the maximum price of $3,572. Considering they have been at a loss since December 2021, many of those investors could exit as eth approaches its breakeven point.
But if the bulls can scale that selling wall, it could lead to stronger bullish momentum for a retest of $4,000, as predicted.
Alternatively, the bears could regain control of the markets if they can force a sharp drop below $3,000. But currently, this seems far-fetched considering the impending buy wall of support mounted at the $3,100 territory.