Ethereum Price Prediction: Can ETH Target $4,500 Next?
The latest wave of ETH price rally is remarkable, as ETH defied downward pressure from two major bearish events. Ethereum (ETH) price gained 9% on Mar. The chart below shows that the ETH funding rate remained at elevated positive values above 0.05% since Feb. 27, when ETH prices first broke above the $3,500 milestone price.
Ethereum price reclaims $3,900 despite bearish headwinds
Ethereum’s price rose 9%, soaring from $3,500 to a peak of $3,900 within the daily timeframe on Mar. 6. The latest wave of ETH price rally is remarkable, as ETH defied downward pressure from two major bearish events.
The crypto markets suffered intense volatility as investors who booked profits when BTC claimed a new all-time high on Mar. 5 inadvertently triggered over $1 billion in liquidations.
Despite two crucial events, ETH added another $48 billion to its market cap within the daily timeframe on Mar. 6, breaking past $3,900 for the first time in three years.
Bullish traders keep ETH funding rates elevated
The dominant bullish expectations and positive buzz surrounding the Ethereum ecosystem ahead of the upcoming Dencun upgrade were vital catalysts for ETH’s resilient price performance on Mar. 6.
Market data shows that ETH speculative traders have maintained their bullish conviction, even as BTC and other mega-cap altcoins experienced major liquidations. Elevated levels in funding rates suggest that traders are overwhelmingly confident of further short-term price upswings and, as a result, offer higher fees to keep contracts open.
Unsurprisingly, ETH’s price quickly soared above $3,900 within the subsequent 24 hours following the spike in funding rate. If this rare market trend persists, according to historical trends, it’s only a matter of time before ETH’s price breaks above the $4,000 mark.
Ethereum price prediction: $4,500 retest only a matter of time?
IntoTheBlock’s global in/out of money chart further affirms this stance: The latest price upswing on Mar. 6 effectively sent the percentage of profitable ETH holders above 97%.
Profitable holders are often reluctant to sell during a bullish market phase, hence, ETH is likely to maintain a relatively high support level above $3,500 as it consolidates before its next leg-up. However, in the event of another bullish upswing, the bulls now have only the $3,992 resistance level to beat on its way to new peaks above $4,000. As seen above, 1.3 million addresses had acquired 493,080 ETH at the minimum price of $3,992. Hence, if Ethereum’s price can establish a steady support level above that range, a move towards new peaks above $4,500 could be on the horizon as predicted.
Analyst comment
Positive news: The Ethereum price rally has been remarkable, defying downward pressure from bearish events. Bullish traders have maintained their conviction, leading to elevated funding rates. The price has reclaimed $3,900 and if this trend continues, it’s only a matter of time before it breaks above $4,000 and potentially reaches $4,500. The percentage of profitable ETH holders is high, indicating a strong support level above $3,500.
