Ethereum Eyes $3,000 Milestone Following Bitcoin’s Breakthrough

Ethereum Eyes $3,000 Milestone Following Bitcoin’s Breakthrough

As Bitcoin (BTC) surged past the $50,000 mark for the first time since 2022, Ethereum (ETH) made significant strides, nearing its 2024 peak at $2,633 on February 12. With both cryptocurrencies exhibiting bullish momentum, attention now turns to whether ETH can reclaim the $3,000 threshold in the near future.

The surge in Ethereum derivative traders’ bullish bets underscores growing optimism surrounding ETH’s potential trajectory. Speculative traders have notably increased leveraged bets, as indicated by CryptoQuant’s funding rate, which spiked to 0.4% on February 13, the highest level in over 40 days.

This surge in funding rates suggests a bullish sentiment among long position holders, anticipating substantial profits from an impending ETH price surge. The uptick in funding rates coinciding with Bitcoin’s milestone indicates a strong bullish outlook for Ethereum, with expectations of a rally towards $3,000.

Further bolstering this sentiment is the increased purchasing activity among US-based corporate entities, aiming to secure approval for an ETH spot exchange-traded fund (ETF) in the first half of 2024. Recent filings by asset managers like Frank Templeton signal institutional confidence in Ethereum’s future prospects.

The Coinbase Premium index, which tracks the price differential between Coinbase Pro and Binance, reveals consistent buying pressure on Coinbase Pro, predominantly from US-based corporates and high-net-worth investors. This trend, often observed before major ETH price rallies, indicates strong support from institutional players.

With speculative traders and institutional investors aligning on a bullish trajectory, Ethereum appears poised for further upside. The $3,000 target remains in focus, although resistance is expected around the $2,750 range. However, if bulls manage to overcome this hurdle, it could pave the way for a sustained push towards the milestone.

While a downward trend below $2,000 remains a possibility, short-term support is likely to hold firm around the $2,350 level, supported by significant holder activity. Overall, the convergence of bullish indicators suggests Ethereum’s potential for a significant upward movement in the coming days.

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