The second biggest cryptocurrency, Ethereum, has been generating buzz in the past few days as the market rebounded. At the time of writing, the global cryptocurrency market is up 2%, according to CoinGecko’s latest data. This has presented a bullish signal for investors, which is certainly the reason for Ethereum’s recent price ascent.
The latest market data shows ETH pumping nearly 3% since last week. Although its rise is slightly slower than that of Bitcoin, this is a positive sign for investors in the long run. Ethereum’s upcoming Shanghai network upgrade is also expected to solidify the altcoin’s position in investor portfolios.
Source: Coingecko
Short Positions Blasted As Bulls Charge Through
Following the general market’s upward trend, Ethereum has left the bears with a beating, leading to a significant amount of short positions being liquidated. CoinGlass data shows that over $26 million worth of short positions were liquidated in the past 24 hours. The website also shows that the bulls have a slight advantage against the bears as sentiment flipped in their favor.
This isn’t the only bullish signal for investors, as US equities have been experiencing a bounce as well despite the recent interest rate hike introduced by the US Federal Reserve. This can be a sign that investors are willing to take on riskier assets, such as cryptocurrencies, as their appetite for risk grows.
However, certain metrics show a bearish trend that investors should take into consideration. Nansen.ai’s recent weekly research roundup shows that addresses holding less than 100 ETH has dropped by 37% since 2022. Despite that, retail addresses with less than 1 ETH increased by nearly 20% year-to-date.
It’s happening 🎊
Shapella is scheduled on mainnet for epoch 194048, scheduled for 22:27:35 UTC on Apr. 12, 2023 📆
Client releases compatible with the upgrade are listed in the announcement below 👇https://t.co/I0hSv9lnjz
— timbeiko.eth ☀️ (@TimBeiko) March 28, 2023
Investors should take this as a sign that retail investor sentiment towards cryptocurrencies is recovering, despite the disastrous year that was 2022. Ethereum holders should also expect the altcoin to pump heavily as the Shanghai upgrade nears. Developers on the Ethereum blockchain have set the launch date at April 12th.
ETH total market cap currently at $220 billion on the daily chart at TradingView.com
At Nearly $1,800 – Can Ethereum Push Towards $2,000?
The current price movement of the altcoin is part of a bigger sideways market movement seen on the charts today. This is a sign that the bulls and bears are stuck in a deadlock. Investors should be cautious as this can be an indicator of a price drop to $1.7k.
However, if the market keeps its momentum upward, we can expect the altcoin to reach $2k in the next couple of months. Once flipped to support, $2k can be a stronger base for a higher upside as this is the support it enjoyed in June 2021 before the crypto market sustained a heavy beating in the ensuing months.
-Featured image from Glamour Instagram
