Following the surge in Bitcoin’s price beyond the $50K milestone, expectations were high among traders for Ethereum to showcase this achievement by surpassing the $3K mark. This anticipation has now ended, with Ethereum breaking through its two-year high, triggering a series of short liquidations. Consequently, this momentum has strengthened bullish sentiments, leading to a significant increase in Ethereum accumulation by investors in anticipation of further price breakouts.
Ethereum’s $3K Milestone Brings $50 Million Liquidations
Bitcoin’s value has surged to $53,000, yet Ethereum has surpassed the performance of BTC, soaring to $3,000 for the first time in nearly two years. These surges in price have placed traders with high leverage in a cautious position, pushing total liquidations to approximately $275 million.
Remarkably, Ethereum experienced total liquidations close to $53 million, with sellers liquidating about $35 million in positions. The beginning of this week was relatively slow, but Bitcoin aggressively surged to $53,000 just minutes ago, marking its first reach to this level since late 2021.
Ethereum has been leading the altcoin rally over the past week. This surge is possibly fueled by the excitement over the potential approval of spot Ethereum ETFs in the United States, showcasing the end of 2023’s hype for Bitcoin ETFs discussions, during which the second-largest digital asset witnessed an increase of over $500 in the past few weeks.
Should approval be granted, traditional investors would gain a secure and regulated pathway to invest in ETH. Major financial entities such as BlackRock, Grayscale, and VanEck are eagerly awaiting regulatory approval.
Additionally, ETH’s network is on the edge of a critical upgrade, known as “Dencun,” slated for March. This upgrade will introduce “proto-danksharding” to the blockchain, aiming to enhance its speed and reduce transaction costs.
A Bloomberg analyst forecasts a possible $4,000 target for ether, mirroring bitcoin’s performance before spot ETF approval. Conversely, TD Cowen and JPMorgan are skeptical, with the former doubting near-term SEC approval for spot ether ETFs and the latter estimating less than a 50% likelihood of such approval by May.
What’s Next For ETH Price?
Ether bounced back from the EMA20 trend line, showing signs that bulls are working to establish this level as support. As a result, bulls gained enough confidence to climb above immediate Fib levels and broke the $3,000 level. As of writing, ETH price trades at 2,925, surging over 0.6% from yesterday’s rate.
Despite breaking through the immediate resistance at $3,000, the price failed to continue its upward trajectory as bears soon triggered a minor correction. However, buyers aim to sustain this momentum and push the price towards the key resistance of $3,100. If successful, we might see a trend toward $3,500.
The recent surge has pushed the RSI above 65, suggesting a potential minor correction or period of consolidation could be on the edge. To indicate a short-term peak, sellers would need to pull the price below the 20-day EMA.
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