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Bittime - Ethereum (ETH) priceagain reached a new 2024 peak of $3,530 around 06:00 GMT on March 4. This price increase was driven by strategic traders who wanted to place bullish bets early before the ETF started trading.
Even though the price is showing an upward trend, ETH still appears to be undervalued (below intrinsic value) compared to the capitalization value channeled to the derivatives market last weekend. With Ethereum open interest currently at a historical peak, can bulls capitalize on the positive momentum to drive a rally above $4,000?
Ethereum Open Interest Soars $400 Million at the Weekend
Ethereum price seems to be on the verge of recording another bullish run this week. The rapid decline in Bitcoin (BTC.D.) dominance is fueling speculation that Ethereum could gain more traction as investors begin to increasingly gravitate towards the altcoin market.
Unsurprisingly, speculative traders spent the weekend betting bullish on the ETH futures market. Coinglass's crypto derivatives analytics platform displays open interest charts that present an aggregate of the total value of funds currently invested in derivatives contracts for a particular crypto asset.
As depicted below, ETH open interest was at $11.4 billion at the close of trading on March 1. That figure has now risen by $400 million over the weekend, reaching a 3-year peak of $11.8 billion at the time of writing on March 4.
Effectively, this implies that while the price of ETH fell 6% from $3,500 towards $3,300, speculative traders continued to double down on their bullish positions.
Bitcoin ETF Anticipation and Potential Capital Flows to Altcoins
There is widespread anticipation that with over 97% of BTC holders currently in profit, some of them will likely continue to reinvest some of their profits into altcoins as seen last week.
If this scenario plays out, and the billion-dollar buying frenzy by the Bitcoin ETF once again sends BTC prices soaring in the coming week, ETH prices have a chance to rise again towards $4,000.
Ethereum Price Prediction: Can ETH Hit $4,000 This Week?
At the time of writing on March 4, Ethereum price is currently trading above $3,500, up 5% from its 24-hour low of $3,365. Taking stock of $400 million in capital inflows into the ETH derivatives market over the weekend, Ethereum price appears poised to make another attempt to break above $4,000 for the first time in 3 years.
However, the historical accumulation trend shows that ETH is facing strong resistance around the $3,650 area. IntoTheBlock in/out of the money data shows that 1.1 million addresses have acquired 205,890 ETH at a maximum price of $3,572. Given that they have been losing money since December 2021, many of these investors could exit as ETH approaches their breakeven point.
ETH Price Today
Source: Bittime.com
On March 4 2024, the price of ETH (Ethereum) was at IDR 55,494,964 per coin, up 2.94% in 24 hours, 3.28% in the last week and 13.97% in the last 30 days.
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But if buyers can overcome the sell wall, it could lead to stronger bullish momentum for a retest of $4,000, as predicted.
Alternatively, the sellers (bears) could regain control of the market if they can force a sharp decline below $3,000. However, at the moment, this seems unrealistic given the looming support buy wall in the $3,100 region.
Conclusion
Ethereum price is in a strong bullish trend, driven by capital flows into derivatives markets and anticipation of potential capital flows from Bitcoin ETFs . Despite some hurdles ahead, such as resistance around $3,650, analysts are optimistic about ETH's prospects for reaching $4,000 in the near term. However, it is important to note that the crypto market is highly volatile, and investors should always do their own research before making any investment decisions.
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How to Buy Ethereum (ETH) on Bittime
You can buy and sell Ethereum (ETH) in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
Bitcoin (BTC) is available on Bittime with the market pair ETH/IDR . To be able to buy ETH/IDR at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. Learn the complete guide on how to buy Ethereum (ETH) on Bittime.
Monitor price chart movements for Ethereum (ETH) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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DISCLAIMER: This article is informational in nature and is not an offer or solicitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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