Will Ethereum Price Break Above $4,000?
Since regaining its year-to-date high of $4,093 on December 6, Ethereum’s price has struggled to break above the psychological $4,000 mark.
However, despite wider market consolidation, market participants continue to accumulate leading altcoins. This increases the likelihood of a breakout of the $4,000 price level in the near term. This analysis details why.
Ethereum buy orders surge
Ethereum’s taker-to-buy ratio It has surged to a monthly high of 1.033, indicating a surge in buy orders in the token derivatives market.
This indicator provides insight into an asset’s market sentiment and potential price direction by comparing the number of buy orders filled to the number of sell orders filled by market takers.
A ratio greater than 1 indicates bullish sentiment as buyers are willing to pay the asking price, reflecting increased demand for the asset. This implies stronger buying pressure, which could signal an upward trend in the price of the underlying asset.
It is worth noting that Positive funding rate for the token Supporting this bullish outlook. As of press time, the total funding rate for ETH on cryptocurrency exchanges is 0.011%.
Funding rates are permanent fees that are paid regularly between traders futures A contract designed to align the contract price with the spot price of the underlying asset. Positive funding rates mean long traders are paying short traders, indicating increased demand for long positions. This usually indicates bullish sentiment in the market, as traders are willing to pay a premium to hold long positions.
ETH Price Prediction: Bulls Tighten Control
On the daily chart, ETH’s rising balance volume confirms the currency’s steady accumulation. As of this writing, the momentum indicator is at 26.06 million.
This indicator uses volume to predict changes in an asset’s price. When an asset’s OBV climbs, it indicates strong buying pressure, indicating that volume is primarily driven by buyers, which is usually a bullish sign of potential price appreciation.
If ETH buyers remain in control, they could push its price above $4,000, reaching a year-to-date high of $4,093. However, if the current trend reverses, ETH price could plummet to $3,673, invalidating the bullish argument.
Disclaimer
conform to trust project Guide, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our terms and Conditions, privacy policyand Disclaimer Updated.
