Ethereum grapples with corrections following its most recent surge. After kicking off trading at $2,565, it hit a high of $2,681. The altcoin is currently exchanging at $2,624 and has increased by over 2% over the last 24 hours.
The second-largest cryptocurrency failed to return to $2,700 as it lost momentum at its peak. Nonetheless, the most recent increase is not an isolated case, as the current day’s trading action marks the fourth consecutive green.
Ethereum has been on the uptrend over the last four days since its massive decline on Friday. One of the highlights of the week happened during the previous intraday session, which saw it start trading at $2,500 but close the day at $2,565 after it dropped to a low of $2,488.
Several factors contributed to the uptrends. One such is the upcoming US elections. Traders are becoming largely optimistic about who will win the polls, resulting in a buying frenzy.
Increasing Activity in the Derivatives Market
Onchain data shows traders flocking to the derivative to long or short the asset. Nonetheless, liquidations over the last 24 hours show the bulls are dominant, as most of the liquidations are from short positions.
The bears are also scrambling to keep their positions open while the bulls add to their winnings, resulting in a rise in funding rates. Some traders are also opening new positions as the open interests grew by over 5% in the last 24 hours.
The ETFs is seeing a gradual decrease in investors’ interest as some are selling at the time of writing. Outflows is over $1 million, which a better figure compared to the over $19 million on Friday. Nonetheless, funds premium is negative, indicating that the selloffs are ongoing.
Traders from key regions are taking profit at the time of writing, which explains the most recent decline that followed the high. The United States sees less funds going into the altcoin as the Coinbase premium flips negative. The Asian market is also seeing more outflow, as the Korea premium shows.
Nonetheless, exchange reserves are declining as some investors scoop up assets for themselves amidst the ongoing trend. Long-term holders are also less willing to sell off their bags, resulting in them moving very few assets to exchange.
Onchain metrics like stochastics and RSI are silent as both are neutral at the time of writing.
Will Ethereum Hit $2,800?
Indicators, such as the Bollinger bands, point to a huge chance that Ethereum may surge above $2,800 within the next two weeks. A closer look at prices shows it recently broke above the middle band and moves closer to the upper band. The upper SMA is at $2,744, which means that ETH will likely break and retest this critical level in the coming days.
The relative strength index shows a growing bullish sentiment among traders. Buying pressure increases as the metric edges closer to 60.
The moving average convergence divergence prints at the time of writing. The 12-day EMA is on the uptrend and will likely intercept the 26-day EMA within the next 24 hours if the uptrend continues. Such interception hints at more uptrend most times and this time may not be different.
The pivot point points to the asset edging closer to testing the first pivot resistance. Ethereum may retest the first pivot resistance at $2,837. Nonetheless, it must maintain trading above the PP at $2,493. Additionally, there are notable orders at $2,800, as traders expect such a surge.
In other news, the coin’s ecosystem may experience tremendous changes and improvements to its ecosystem in the coming days as the co-founder laid out a few targets he wants the project to achieve.
