Ethereum's Ether Sees Substantial Price Surge on March 31: Factors and Predictions
Summary:
On March 31, Ethereum's Ether (ETH) observed substantial price growth by 3.5%, reaching over $3,630. Factors contributing to Ether's increase include strong gains against Bitcoin (BTC) signalling a short-term shift of capital, a significant uptick in the Ethereum Dominance Index, and heightened accumulation by Ethereum whales. Ether's funding rates also soared in the perpetual contracts market, revealing an increase in borrowing for long positions. The trend forecasts a potential surge in ETH's price to over $4,000 if it breaks above the upper trend of the wedge, while technical analysis indicates a target price around $3,280 for April.
Ethereum's cryptocurrency Ether (ETH) saw an increase of 3.5% in its value today, elevating the price to above $3,630 as of March 31. This registers 18.75% growth from its recent lowest value of approximately $3,050, tracked about a week ago.
Pulling focus onto the aspects contributing to the escalation of Ether's price recently -
Shift of Capital into Ether Market
As Ether's value against U.S. dollar heightens, it's equally witnessing significant growth when pinned against Bitcoin (BTC). The ETH/BTC pair experienced a rise of around 2.5% on March 31, hitting 0.051 BTC, indicating a potential short-term shift of capital.
This trend is also underscored by the better performance of Ether compared to the wider digital currency market, a fact underlined by Ethereum Dominance Index (ETH.D) that rose substantially by more than 2% within 48 hours starting from its lowest point on March 29.
It shows that there has been a recent transition of capital from various altcoins to the Ether market, strengthening ETH's dollar-bound value.
Reemergence of Ethereum Whales
Ether's current gains predict a phase of collection amongst its most wealthy investors, or whales. Glassnode data suggests that entities owning between 1,000 to 10,000 ETH increased their Ether holdings by approximately 1.15% in March. These patterns often pave the way for significant price upsurges.
Surge in ETH's Funding Rate
Concurrently with rise in Ether's price, the funding rates in the perpetuity contracts market are experiencing swift increases, hitting a three-week high. As for example, the funding rate of Dogecoin perpetual futures contracts was as high as 0.0591% per eight hours, or 1.24% per week as of March 31. It is the maximum since March 12 and indicates escalating costs of holding long positions.
Another thing to note is that Ether's open interest or total amount of outstanding derivative contracts, although it has stabilized around $14 billion after reaching an all-time high a few days ago. A stable open interest and increasing funding rate indicate that traders are borrowing more to fund their long positions in expectation of the asset's price escalating and growing their returns.
Technical Aspects: upswing in ETH price
The rise in Ether's price is resultant of the testing of the lower trendline of its possible wedge pattern. It also drew more support from its 0.236 Fibonacci retracement level near the $3,485 mark. Conversely, ETH's price is anticipated to cross over $4,000 by the end of April if the price breaks above the upper trendline of the wedge.
However, readers are to do their due diligence before acting upon this information as it does not constitute direct advice or recommendations concerning investments. Any investment or trading involves inherent risks.
Published At
3/31/2024 2:15:56 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.