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Ethereum aims for $2,800 as traders pile in

GrafaGrafa2024/09/18 07:40
By:Liezl Gambe

Ethereum (CRYPTO:ETH) is indicating signs of a potential price surge as traders take on high-leverage positions, targeting a price range between $2,744 and $2,800.

Recent activity in Ethereum’s derivatives market underscores this optimism.

On September 16, Ethereum’s Estimated Leverage Ratio (ELR) reached its highest point in over a month, suggesting that traders are increasingly making high-risk bets in anticipation of a strong price rally.

This shift follows a notable dip on September 15, where traders appeared cautious, but the rapid turnaround reflects renewed market confidence.

Analysts believe this confidence is partly due to Ethereum's performance relative to Bitcoin (CRYPTO:BTC) (ETH/BTC), which has dropped to its lowest level in over three years.

Benjamin Cowen, a crypto analyst and founder of Into the Cryptoverse, stated, "ETH/BTC will likely bottom between 0.03-0.04 and then trend up in 2025. It could bottom as early as this week or as late as December."

This outlook may have bolstered traders' belief that Ethereum has reached a bottom, driving the recent bullish momentum.

Additionally, Ethereum’s Funding Rate remains strongly positive, indicating that traders are willing to pay a premium to maintain long positions, signaling expectations of upward price movement.

A negative Funding Rate would suggest bearish sentiment, but the current positive rate points to a prevailing belief in a price increase toward $2,800.

Technical analysis also supports this sentiment.

A bullish falling wedge pattern, a technical structure that often precedes an upward breakout, has formed on Ethereum’s daily chart.

If Ethereum breaks out of this pattern, the next target could be around $2,744, with a potential high of $2,918 in an extremely bullish scenario.

However, if market sentiment turns bearish, the price could drop to $2,114, challenging this optimistic forecast.

With positive on-chain data and supportive technical indicators, Ethereum traders remain hopeful of reaching the $2,800 target in the near term.

At the time of reporting, the Ethereum (ETH) price was $2,318.17.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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