Ethereum’s Ether (ETH) has witnessed a notable increase, climbing 3.5% to surpass $3,630 on March 31.
This rise marks an 18.75% improvement from its recent low near $3,050, observed just over a week ago.
The momentum behind Ether’s recent price uptick is multifaceted.
A significant aspect is its performance against both the U.S. dollar and Bitcoin (BTC).
The ETH/BTC pair, for instance, saw a 2.5% increase on the same day, reaching 0.051 BTC.
This suggests a potential short-term capital shift towards Ether.
Ether’s market dominance has also seen a boost, evidenced by a 2.16% rise in the Ethereum Dominance Index (ETH.D) in the last 48 hours from its March 29 low.
This trend indicates an inflow of investment from other altcoins into Ether, strengthening its dollar valuation.
A key factor in this surge is the behavior of Ether’s largest holders, or “whales,” who have been accumulating more ETH.
Glassnode data shows that entities with 1,000 to 10,000 ETH have increased their holdings by 1.15% in March. Such accumulation patterns have historically preceded significant price rallies.
Furthermore, Ether’s funding rates in the perpetual contracts market have escalated, with the funding rate for Dogecoin perpetual futures reaching 0.0591% per eight hours as of March 31.
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This indicates a higher cost for maintaining long positions and suggests an anticipation of further price increases.
Ether’s open interest in derivative contracts has leveled at around $14 billion, following a recent peak.
This stabilization, coupled with rising funding rates, suggests an eagerness among traders to leverage their positions, anticipating further price growth.
Ether’s current trajectory also reflects technical analysis patterns.
After testing its lower trendline in what seems to be a rising wedge pattern, Ether found support at the $3,485 level, corresponding to its 0.236 Fibonacci retracement.
Rising wedges typically indicate a potential price drop; however, if Ether breaks above the pattern’s upper trendline, it could ascend towards $4,000 by the end of April, challenging the 0.0 Fibonacci level.
Conversely, adherence to the rising wedge pattern could see ETH’s price target adjusting to around $3,280.
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