Ethereum price today: $3,660
- Ethereum is seeing high capital inflows amid a 15% ETH/BTC ratio growth.
- ETH's open interest and futures premium show high bullish sentiment among traders.
- Ethereum could rally to $4,522 if it sees a surge above a key ascending trendline resistance.
Ethereum (ETH) rallied 10% on Wednesday following increased capital inflows into ETH ETFs and a major uptick in its open interest and futures premium. If the bullish momentum sustains, ETH could overcome its yearly high resistance of $4,093 and rally to $4,522.
Ethereum witnesses high bullish sentiment amid major ETH/BTC transition
Ethereum ETFs recorded net inflows of $40.6 million on Tuesday, marking a third consecutive day of positive flows for the products, per Coinglass data. This comes amid back-to-back net outflows in Bitcoin ETFs.
Unlike previous times where outflows in BTC ETFs drag ETH alongside it, ETH ETFs are beginning to craft their own path.
A potential reason for the positive flows could be investors rotating from Bitcoin into ETH in anticipation of an altcoin season.
Altcoin season is a phase in the cryptocurrency market cycle where investors take profits after benefiting from the Bitcoin bull market and shift their investments into altcoins with Ethereum as the leading alternative.
Most investors are calling an alt season as Ethereum has been outperforming Bitcoin in the past few weeks. Since reaching a low of $0.3204 on November 21, the ETH/BTC ratio — which measures the performance of ETH compared to BTC — has surged over 15%.
ETH/BTC daily chart
ETH's rise is accompanied by strong bullish sentiment across its derivatives market.
ETH open interest (OI) reached a new all-time high of 6.55 million ETH worth $23.34 billion on Wednesday, continuing its increased growth in the past two weeks, per Coinglass data.
Open interest is the total number of outstanding contracts in a derivatives market. A growth in OI alongside prices signals rising bullish pressure.
ETH Open Interest | Coinglass
Additionally, ETH's three-month premium — the gap between its futures and spot prices — across crypto exchanges Binance, OKX and Deribit surged to 16%, per Velo data.
Ethereum Price Forecast: ETH could complete move to $4,522 with a surge above an ascending trendline resistance
Ethereum is up 10% after sustaining $53.92 million in liquidations in the past 24 hours, per Coinglass data. Liquidated long and short positions accounted for $8.23 million and $45.69 million, respectively.
The top altcoin has surged above the $3,400 key level and is testing an ascending trendline resistance extending from November 12.
ETH/USDT daily chart
If ETH maintains the bullish momentum and overcomes this trendline resistance, it could rally above its yearly high of $4,093 to $4,522. This move will complete the inverted Head-and-Shoulders rally that ETH has been hinting at in the past two weeks.
The Relative Strength Index (RSI) is trending upward and testing the overbought region line, indicating rising bullish momentum.
A daily candlestick close below the $2,817 level will invalidate the bullish thesis and send ETH to find support near $2,300.
Ethereum FAQs
Ethereum is a decentralized open-source blockchain with smart contracts functionality. Its native currency Ether (ETH), is the second-largest cryptocurrency and number one altcoin by market capitalization. The Ethereum network is tailored for building crypto solutions like decentralized finance (DeFi), GameFi, non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), etc.
Ethereum is a public decentralized blockchain technology, where developers can build and deploy applications that function without the need for a central authority. To make this easier, the network leverages the Solidity programming language and Ethereum virtual machine which helps developers create and launch applications with smart contract functionality.
Smart contracts are publicly verifiable codes that automates agreements between two or more parties. Basically, these codes self-execute encoded actions when predetermined conditions are met.
Staking is a process of earning yield on your idle crypto assets by locking them in a crypto protocol for a specified duration as a means of contributing to its security. Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism on September 15, 2022, in an event christened “The Merge.” The Merge was a key part of Ethereum's roadmap to achieve high-level scalability, decentralization and security while remaining sustainable. Unlike PoW, which requires the use of expensive hardware, PoS reduces the barrier of entry for validators by leveraging the use of crypto tokens as the core foundation of its consensus process.
Gas is the unit for measuring transaction fees that users pay for conducting transactions on Ethereum. During periods of network congestion, gas can be extremely high, causing validators to prioritize transactions based on their fees.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: Slow but positive start
Bitcoin edges slightly lower, trading around $96,500 on Friday after an over 2.5% recovery this week, with historical data showing modest average January returns of 3.35%. On-chain metrics suggest the bull market remains intact, indicating a cooling-off phase rather than a cycle peak.
Stellar bulls aim for double-digit rally ahead
Stellar extends its gains, trading above $0.45 on Friday after rallying more than 32% this week. On-chain data indicates further rally as XLM’s Open Interest and Total Value Locked rise. Additionally, the technical outlook suggests a rally continuation projection of further 40% gains.
BTC, ETH and XRP eyes for a rally
Bitcoin’s price finds support around its key level, while Ethereum’s price is approaching its key resistance level; a firm close above it would signal a bullish trend. Ripple price trades within a symmetrical triangle on Friday, a breakout from which could signal a rally ahead.
Could XRP surge to new highs in January 2025? First two days of trading suggest an upside bias
Ripple's XRP is up 7% on Thursday, extending its rally that began during the New Year's Day celebration. If long-term holders (LTH) continue their recent accumulation, XRP could overcome the $2.9 resistance level and aim for a new all-time high.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.