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Ethereum has recently climbed to a major high above $3,400, reigniting enthusiasm among market participants and signaling a potential upward trend that may lead to a push above $4,000 toward a new all-time high. This optimism has been met with major speculation of ETH’s price from the crypto community and analysts, who are observing key indicators within the market to assess the asset’s trajectory. Related Reading: Ethereum Weekly Volume Hits $60 Billion As ETH Aims For Yearly Highs Ethereum Rise and Market Sentiment According to a report shared by a CryptoQuant analyst known as ‘ShayanBTC,’ Ethereum’s recent price performance, up by 35% in the past week, has been accompanied by positive sentiment in the futures market, providing a detailed look into potential short-term fluctuations. Shayan pointed out that the funding rates for Ethereum futures have remained positive, demonstrating strong demand and bullish sentiment among investors. Notably, positive funding rates typically indicate buyers are willing to pay a premium to hold long positions, which signifies market confidence. The analyst highlighted that this surge in positive sentiment was especially evident when Ethereum surpassed the $3,000 mark, reflecting a similar pattern observed during the March 2024 rally that culminated in a yearly peak. This pattern now raises questions about whether the current momentum can be sustained or if the market is vulnerable to sudden reversals, just as it did following a major rally earlier this year. What Is Expected While positive funding rates are a favorable sign of market interest, they can also indicate heightened risk when they become too elevated. Shayan particularly noted: Although positive funding rates generally signify healthy demand in a bullish market, elevated funding rates can be a red flag. The analyst cautioned that high funding rates may point to an “overheated” market, which could increase the likelihood of a long liquidation cascade if the price faces significant resistance or experiences even a modest correction. Elevated rates suggest that traders may be over-leveraged, creating conditions where a sharp pullback could trigger a wave of sell-offs as leveraged positions are liquidated. The CryptoQuant analyst further revealed that with Ethereum experiencing high funding rates in the current market climate, investors may need to “exercise caution and adopt strategies to mitigate potential risks.” Related Reading: Ethereum Could Be Set To Explore New Highs As On-Chain Metrics Light Up The analyst emphasized that with heightened funding rates comes an increased chance of market volatility. Rapid price movements could lead to liquidations, particularly if profit-taking or minor corrections unsettle the market. Meanwhile, Ethereum has breached the $3,400 price mark to trade as high as $3,424 earlier today. However, at the time of writing, the asset appears to have seen a slight correction with a current trading price of $3,289, albeit still up by 2.2% in the past day. Featured image created with DALL-E, Chart from TradingView
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Ethereum crypto crypto market cryptoquant ETH ethereum Ethereum Market ethereum price Ethereum Price analysis ETHUSDT
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Memecoins face sell-off: Why Dogecoin tops the risk chart
The delta volume of top trending memecoins showed sell-off pressure due to recent volatility. NewsBTC
Bitcoin Price Could Peak In 200 Days, Before US Recession In Mid-2025, Report Says
The current Bitcoin (BTC) rally could extend until mid-2025, with a potential price peak before a US recession. Bitcoin Could Peak In Mid-2025 Before US Recession A recent Copper Research report, a recent crypto research firm, posits that the leading cryptocurrency by market cap could extend its bullish momentum until mid-2025. Related Reading: Bitcoin Data Reveals Bulls Are Growing But Still Behind March 2024 Peak – Details As of November 13, Bitcoin is on day 555 of its current market cycle, and a price peak for the digital asset could arrive within the next 200 days. Notably, this peak may coincide with a potential US recession forecasted for mid-2025. According to the report, Bitcoin’s market cycles average 756 days. The starting point of these cycles is when the annual average growth of Bitcoin’s market capitalization turns positive, while the endpoint is when it hits a price peak. The report marks the beginning of the current market cycle around mid-2023, just before asset manager BlackRock filed for a BTC exchange-traded fund (ETF). Should Bitcoin stay true to its historical price patterns, the digital asset can hit its price peak for this cycle sometime around mid-2025. The report cites estimates by JPMorgan about the likelihood of a US recession in mid-2025. As a result, BTC’s price peak might align with a potential US economic downturn. Based on data from Treasury spreads, JPMorgan gives a 45% chance of a potential US recession by mid-2025. The report further highlights the gap between BTC’s price top and realized volatility. For the uninitiated, realized volatility measures BTC’s price fluctuations over a specific period, showing the standard deviation of the asset’s returns from the market’s mean return. BTC’s realized volatility currently stands at around 50%, indicating that its volatility is only halfway to previous bull market peaks. Another bullish technical indicator for the BTC price trajectory is its filtered relative strength index (RSI). The report reads: Currently, the RSI sits at 60 – well below previous bull market highs – indicating considerable room for Bitcoin to continue building momentum into the new year. BTC Could Rise Further, But Caution Is Necessary The digital assets market has been on a strong upward trend since pro-crypto Donald Trump’s victory in the 2024 US presidential election. Related Reading: Bitcoin ETFs See Historic Surge – Institutions Go Bullish On BTC With $1.38 Billion Record Inflows Notably, the emerging industry has witnessed its total market cap surge beyond $3 trillion for the first time since November 2021. The rise in total crypto market cap – largely driven by BTC – is not surprising since the Trump administration is speculated to establish a strategic Bitcoin reserve akin to that of El Salvador under Nayib Bukele. Bitcoin’s unprecedented price action has propelled the digital asset’s total market cap beyond that of silver, solidifying it as the 8th largest global asset by market cap in existence. With this in mind, it will be interesting to see how BTC dominance (BTC.D) behaves in the coming weeks, especially after facing rejection just below the $90,000 level. Currently hovering slightly above 60%, a fall in BTC.D could signal a capital rotation from BTC into altcoins, potentially benefiting smaller-cap digital assets. BTC trades at $87,767 at press time, up 1.1% in the past 24 hours. The asset’s total market cap sits at $1.738 trillion. Featured image from Unsplash, Chart from TradingView.com NewsBTC
