Ethereum is on the rise—up by over 2% over the last 24 hours. Nonetheless, it attained a new milestone. It started the day at $2,632 but gradually edged closer to $2,700 before breaking it a few minutes to the time of writing.
The altcoin peaked at $2,729 but failed to keep prices above the mark for long, as it soon retraced below it. The current day’s price action marks the second consecutive gain, as ETH registered a similar increase the previous day.
Macroeconomics was responsible for the surge. The latest hike in price correlates with the buying frenzy the Chinese stock exchange saw. The frenzy sent many assets in the CSE to surge in response. The top gainers were filled with some companies rising by over 20%.
The top gainer is HEBEI BROADCASTING, with gains exceeding 28%. XIONG’AN NEW POWER and CHANGZHOU TIASHEN followed close behind, gaining over 20%.
The frantic end to the trading week saw China’s stock market after years of losses, making it one of the world’s worst performers. Chinese authorities released a barrage of monetary stimulus on Tuesday as top leaders promised more positive policies. These promises caused investors to FOMO, resulting in the current trend.
The spillover into the crypto market also revived hopes of assets like Ethereum returning to previous highs. On-chain data may also support this bid, as some metrics are positive.
Ethereum Funding Rate is Green
Data from CryptoQuant shows that the asset is receiving notable funding from a critical region. US investors are bullish on the cryptocurrency, causing the Coinbase premium to become green. They also buy ETFs and other related products.
The derivative market is also seeing a significant inflow. The funding rate is green as more bullish traders add to their long positions. Open interest also increased by over 3% in the last 24 hours. However, more sell orders are getting filled as the asset peaked.
Nonetheless, more ETH is leaving exchanges as investors’ psychology changes. The withdrawal of these assets for these platforms shows the growing belief that the cryptocurrency will continue the uptrend.
ETH May Fill a CME Gap
A close look at the Ethereum CME chart. A wide gap spanning $2,797 and $3,000. Ethereum is currently trading above its pivot point. The current level may serve as the needed accumulation point for the bulls.
A previous event that caused a cryptocurrency to flip this critical level adds to the chances of such a thing happening. A gap opened between $3,236 and $3,126. Prices retraced to fill it two weeks later. The space has been present since August and is due for filling.
Currently trading above its pivot point, it is crucial for the bulls to defend this level, as a drop could lead to a further decline down to $2,400. However, considering the buy orders and positive indicators, the asset could potentially reclaim $2,700 in the coming days.
Fibonacci retracement levels indicate a possible retest of the 61% level at $2,800 if the uptrend persists. The next target would be the 50% level at $2,988, where significant sell orders are present, increasing the likelihood of a reversal at this point.
Aside from the bullish signals, there are bearish signals as well. For example, the altcoin tested the boundary on the Bollinger band. It attempted to break out above the upper band. Nonetheless, the test may signify more declines ahead for the asset.
The average direction index is in the downtrend, indicating a notable drop in the driving force behind the uptrend. The on-chain stochastic is also negative, indicating a possible retracement. Ethereum may hover around $2,500 before the next price breakout.
