Ethereum (ETH) was closed above $ 2,700 for the first time yesterday in four weeks. The rise is continuing today and ETH shows a very encouraging course pattern. With the momentum the chance of a test of the psychological limit of 3,000 dollars is growing, which has not appeared on the signs since February.
Ethereum gains ground compared to Bitcoin
According to data analysis company Swissblock, the relationship between Ethereum and Bitcoin (BTC) is now a lot more favorable than in the second quarter. That development could indicate the start of an altseason, where other cryptos perform stronger than Bitcoin. In the meantime, Bitcoin’s dominance is declining, which is more often accompanied by race wins at Altcoins.
Another signal is that the institutional interest in Ether is increasing sharply. The outstanding trade volume in Ethereum-Futures on Large CME fair, also known as open interest, indicates how many contracts are still open and therefore not concluded or settled. That amount has risen to $ 3.27 billion, the highest level since the beginning of February.
The spot ETFs for Ether bake with capital also continue to attract positive net instreams with eight weeks in a row, good for more than 61,000 ETH according to figures from Farside. Yesterday, one of the highest instruments was reported since the launch of more than 200 million dollars.
Technical signals remain positive for ETH
Technically, ether seems ready for a further increase. The course moves above 50, 100 and 200-day progressive averages and the RSI, a well-known momentum indicator, is above 60. That points to persistent purchasing pressure.
The resistance between $ 2,650 and $ 2,800 will be tested again this week. If that zone is broken, a fast movement towards 3,000 dollars is obvious. Currently the race is just above, but it is still too early to speak of an outbreak.
The chance of a rapid increase increases due to the price area between 3,000 and $ 3,300, where little trading activity took place earlier. There is usually less resistance in these types of zones, so that the price can accelerate considerably in a short time if the momentum persists.
At the same time, risks are also lurking. The open interest in ETH Futures rose by more than 10.6 percent on Tuesday, which may indicate excessive speculation. Crypto analyst Marchunn pointed out that earlier spikes in leverage often followed a relapse. In 11 of the last 13 cases, the race dropped shortly thereafter. But who knows this time it is different.
Source: https://newsbit.nl/waarom-ethereum-de-komende-dagen-naar-3-000-kan-stijgen/
