Ethereum

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Ethereum’s price continues to advance towards $4,000 despite market-wide liquidations and the U.S. SEC postponing a decision on Blackrock and Fidelity ETH ETF filings.&nbsp; 
Ethereum traders have doubled bullish positions despite a major setback to institutional participation on the pioneer smart contract network and intense market volatility recorded on Mar. 6.&nbsp; 
Market analysis explores how this show of conviction among speculative traders could impact the ongoing <a href="https://crypto.news/price/ethereum/" target="_blank" rel="noreferrer noopener">ETH</a> price rally in the near-term.&nbsp; 
<h2 class="wp-block-heading" id="ethereum-price-reclaims-3-900-despite-bearish-headwinds">Ethereum price reclaims $3,900 despite bearish headwinds</h2> 
Ethereum’s price rose 9%, soaring from $3,500 to a peak of $3,900 within the daily timeframe on Mar. 6. The latest wave of ETH price rally is remarkable, as ETH defied downward pressure from two major bearish events.&nbsp; 
The crypto markets suffered intense volatility as investors who booked profits when BTC claimed a new all-time high on Mar. 5 inadvertently triggered over <a href="https://crypto.news/crypto-liquidations-surpass-1-billion-as-the-market-plunges/" data-type="post" data-id="14255953" target="_blank" rel="noreferrer noopener">$1 billion</a> in liquidations.&nbsp; 
Previously, crypto.news also <a href="https://crypto.news/sec-postpones-decision-on-blackrock-and-fidelitys-ethereum-spot-etf/" target="_blank" rel="noreferrer noopener">reported that</a> the U.S. SEC had postponed its decision on Blackrock and Fidelity’s filings to launch an Ethereum ETF product.&nbsp; 
Despite two crucial events, ETH added another $48 billion to its market cap within the daily timeframe on Mar. 6, breaking past $3,900 for the first time in three years.&nbsp; 
<figure class="wp-block-image">
 <img loading="lazy" decoding="async" width="1600" height="611" src="https://crypto.news/app/uploads/2024/03/image-13.png" alt="Ethereum (ETH) price gained 9% on March, 6 2024" class="wp-image-14256338">
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 Ethereum (ETH) price gained 9% on Mar. 6 2024 | Source: <a href="http://tradingview.com" target="_blank" rel="noopener">TradingView</a>
 </figcaption>
</figure> 
It was previously anticipated that the SEC would provide a verdict as early as April 2024. Still, the latest development means that the May 7 deadline on Vanguard’s application is now the most significant date for a possible ETH ETF approval verdict.&nbsp; 
The launch of the Ethereum ETF is expected to open the floodgates of institutional demand, as observed in the Bitcoin markets over the past month.&nbsp; 
Typically, news of such a verdict delay from the SEC, could put instant downward pressure on the price of the underlying asset. Remarkably, ETH defied the bears’ soaring 9% within 24 hours of the postponement hitting the newsreels.&nbsp; 
<h2 class="wp-block-heading" id="bullish-traders-keep-eth-funding-rates-elevated">Bullish traders keep ETH funding rates elevated</h2> 
The dominant bullish expectations and positive buzz surrounding the Ethereum ecosystem ahead of the upcoming Dencun upgrade were vital catalysts for ETH’s resilient price performance on Mar. 6.&nbsp; 
Market data shows that ETH speculative traders have maintained their bullish conviction, even as BTC and other mega-cap altcoins experienced major liquidations.&nbsp; 
Santiment’s Funding Rates metric presents a daily aggregate of fees paid between holders of perpetual futures contracts for a specific crypto asset. Fluctuations in funding rate trends offer insights into speculative traders’ inclinations regarding short-term price movements.&nbsp; 
The chart below shows that the ETH funding rate remained at elevated positive values above 0.05% since Feb. 27, when ETH prices first broke above the $3,500 milestone price. 
Despite the bearish headwinds on Mar. 6, ETH bulls did not exit their positions. Instead, they doubled down on bullish positions, driving the funding rate to a 2024 peak of 0.09%.&nbsp;&nbsp; 
<figure class="wp-block-image">
 <img loading="lazy" decoding="async" width="1600" height="756" src="https://crypto.news/app/uploads/2024/03/image-14.png" alt="Ethereum (ETH) Funding rate vs. Price | March 2024" class="wp-image-14256340">
 <figcaption class="wp-element-caption">
 Ethereum (ETH) Funding rate vs. Price | March 2024 | Source: <a href="https://embed.santiment.net/chart?ps=ethereum&amp;pt=ETH&amp;df=2023-10-22T00%3A00%3A00.000Z&amp;emnm=1&amp;emcg=1&amp;wm=price_usd%3Btotal_funding_rates_aggregated_per_asset&amp;wax=0%3B1&amp;wc=%2326C953%3B%23FFCB47&amp;ws=%7B%22interval%22%3A%221d%22%7D%3B%7B%22interval%22%3A%221d%22%7D" target="_blank" rel="noreferrer noopener">Santiment</a>
 </figcaption>
</figure> 
Elevated levels in funding rates suggest that traders are overwhelmingly confident of further short-term price upswings and, as a result, offer higher fees to keep contracts open.&nbsp; 
Unsurprisingly, ETH’s price quickly soared above $3,900 within the subsequent 24 hours following the spike in funding rate. If this rare market trend persists, according to historical trends, it’s only a matter of time before ETH’s price breaks above the $4,000 mark.&nbsp; 
<h2 class="wp-block-heading" id="ethereum-price-prediction-4-500-retest-only-a-matter-of-time">Ethereum price prediction: $4,500 retest only a matter of time?&nbsp;</h2> 
Ethereum’s journey to having a listed ETF in the U.S. may have suffered a setback. However, its path toward reclaiming the $4,000 price level still appears unhindered, considering the growing bullish conviction observed in the ETH derivatives markets.&nbsp;&nbsp; 
IntoTheBlock’s global in/out of money chart further affirms this stance: The latest price upswing on Mar. 6 effectively sent the percentage of profitable ETH holders above 97%.&nbsp; 
Profitable holders are often reluctant to sell during a bullish market phase, hence, ETH is likely to maintain a relatively high support level above $3,500 as it consolidates before its next leg-up.&nbsp; 
However, in the event of another bullish upswing, the bulls now have only the $3,992 resistance level to beat on its way to new peaks above $4,000.&nbsp; 
<figure class="wp-block-image">
 <img loading="lazy" decoding="async" width="1600" height="473" src="https://crypto.news/app/uploads/2024/03/image-15.png" alt="Ethereum (ETH) Price Prediction | March 2024" class="wp-image-14256339">
 <figcaption class="wp-element-caption">
 Ethereum (ETH) Price Prediction | March 2024 | Source: <a href="https://app.intotheblock.com/coin/ETH/deep-dive?group=financials&amp;chart=inAndOut" target="_blank" rel="noreferrer noopener">IntoTheBlock</a>
 </figcaption>
</figure> 
As seen above, 1.3 million addresses had acquired 493,080 ETH at the minimum price of $3,992. Hence, if Ethereum’s price can establish a steady support level above that range, a move towards new peaks above $4,500 could be on the horizon as predicted.

Ethereum price bullish despite $1b liquidations, SEC postponing ETH ETFs

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