Ethereum

After Bitcoin soared past the $50K milestone, traders eagerly anticipated Ethereum to mirror this success by crossing the $3K threshold. This expectation came to a conclusion as Ethereum shattered its two-year peak by breaking the $3,000 milestone, setting off a wave of short liquidations. This breakthrough has triggered bullish outlooks, prompting a rise in Ethereum accumulation by investors who are now gearing up for potential further price surges. Nevertheless, with the increase in profit-taking behavior around that mark and the exit of both long-term and short-term holders near the peak, this led to a steep decline in the ETH price.<h2 id="header-0">Ethereum’s Netflow Becomes Positive</h2>Bitcoin’s value has climbed to $53,000, but Ethereum has outpaced BTC’s gains, reaching $3,000 for the first time in almost two years. These price increases have put highly leveraged traders on alert, leading to total liquidations of around $300 million.Yet, Ethereum’s price is now undergoing a significant drop as many investors sold their stakes near the $3,000 peak. Notably, Ethereum saw total liquidations nearing $8.6 million, with a substantial $8.5 million of those being buyer liquidations. The week started off on a slower note, but Bitcoin made an aggressive move to $53,000, hitting this level for the first time since late 2021.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/f46c701d0f9a46c194d79f0028200337.png" />Data from <a href="https://www.intotheblock.com/" rel="noopener noreferrer nofollow">IntoTheBlock</a> shows that the Netflow metric for ETH has moved into the positive territory, indicating that the volume of inflows now exceeds that of outflows. This shift points to a rise in exchange reserves, increasing the likelihood of sales and thus exerting downward pressure near resistance levels. The Netflow metric currently registers at &#43;20,470 ETH.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/a87f294fcb1646aea3f44f30c4795104.png" />Moreover, the volume of large transactions has doubled recently, jumping from a low of 1.08 million ETH to 2.26 million ETH. This increase signals a rise in activity by major investors or “whales.” In the event of such a market rejection, these whales could lose confidence, potentially triggering a wave of selling pressure that may drive the ETH price down to its immediate support levels.However, the bullish sentiment continues as ETH’s network is poised for a pivotal enhancement called “Dencun,” scheduled for March. This update is set to deploy “proto-danksharding” to the blockchain, which is expected to boost its performance and lower transaction fees.A Bloomberg analyst has projected a potential rise in ether’s value to $4,000, drawing parallels with bitcoin’s rally preceding the <a href="https://blockchainreporter.net/sec-approves-bitcoin-etfs-a-new-era-in-crypto-investment-or-the-end/" rel="noopener noreferrer nofollow">approval</a> of spot ETFs. On the other hand, TD Cowen and JPMorgan express skepticism; TD Cowen questions the immediate approval of spot ether ETFs by the SEC, while JPMorgan assigns a probability of less than 50% for such approval by May.<h2 id="header-1">What’s Next For ETH Price?</h2>Ether rebounded off the 20-day Exponential Moving Average (EMA), indicating that buyers are attempting to solidify this level as a foundation of support. Consequently, this boosted the buyers’ confidence, enabling them to surpass the immediate Fibonacci retracement levels and break past the $3,000 mark. Currently, the price of ETH stands at $2,948, marking an increase of over 1.1% from the previous day’s value.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/380ff804a33a485ca3c188ef6070d25f.png" />Although the price managed to breach the immediate barrier of $3,000, it couldn’t maintain its surge as sellers initiated a pullback. Nonetheless, buyers are keen on maintaining the upward momentum with hopes of driving the price towards the critical resistance level at $3,100. Achieving this could set the stage for a move towards $3,500.The recent price rejection has plunged the Relative Strength Index (RSI) toward 58, hinting at the possibility of a minor correction or a consolidation phase looming. For a short-term peak to be indicated, sellers would have to send the price below the 20-day EMA.

Ethereum Faces Sharp Rejection Near $3,000 As Profit-Taking Sentiment Rises! What’s Next For ETH Price?

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