Despite market-wide liquidations and a delay in the SEC‘s decision on Blackrock and Fidelity’s ETH ETF filings, Ethereum demonstrates resilience as traders double down on bullish positions.
In the face of adversity, Ethereum’s price continues its upward trajectory, surging by 9% from $3,500 to a peak of $3,900 on March 6. This surge is noteworthy as it defies downward pressure resulting from significant market liquidations and the SEC’s postponement of a decision on Ethereum ETF filings by Blackrock and Fidelity.
The crypto market experienced heightened volatility as over $1 billion in liquidations were triggered by profit-taking following Bitcoin‘s new all-time high on March 5. Simultaneously, the SEC’s delay in ruling on the ETF filings had the potential to cast a shadow on Ethereum’s prospects. Despite these challenges, Ethereum added an impressive $48 billion to its market cap within the daily timeframe, surpassing $3,900 for the first time in three years.
Previously expected in April 2024, the SEC’s decision is now slated for May 7, making it a pivotal date for a possible ETH ETF approval. Analysts anticipate that the launch of an Ethereum ETF could unleash institutional demand, similar to the recent trend observed in Bitcoin markets.
Bucking the conventional response to SEC verdict delays, Ethereum not only maintained its price but surged 9% within 24 hours of the news, signaling strong confidence among bullish traders.
Positive Momentum Sustained by Bullish Traders
Amid the challenges, the optimism surrounding Ethereum’s upcoming Dencun upgrade and bullish expectations in the derivatives markets played a crucial role in the resilient performance on March 6. Data from Santiment’s Funding Rates metric reveals that ETH speculative traders remained steadfast in their bullish positions, even as other major cryptocurrencies faced significant liquidations.
Despite bearish headwinds on March 6, ETH bulls not only held their positions but increased them, pushing the funding rate to a 2024 peak of 0.09%. Elevated funding rates indicate overwhelming confidence among traders in short-term price upswings, contributing to ETH’s rapid climb above $3,900 within the subsequent 24 hours.
Is $4,500 Within Reach?
While the setback in securing a listed ETF in the U.S. may pose a challenge, Ethereum’s journey to reclaim the $4,000 price level seems unhindered. Analysis of IntoTheBlock’s global in/out of money chart supports this stance, revealing that the latest price surge on March 6 elevated the percentage of profitable ETH holders to over 97%.
Profitable holders, reluctant to sell during bullish phases, are expected to provide substantial support above $3,500 as Ethereum consolidates before its next upward move. In the event of another bullish upswing, ETH faces only the $3,992 resistance level before aiming for new peaks above $4,000.
With 1.3 million addresses holding 493,080 ETH at the minimum price of $3,992, establishing a steady support level in this range could pave the way for Ethereum’s ascent towards new highs, potentially reaching $4,500 as predicted.
