Ethereum is finally making a strong recovery, climbing above the important $4,500 level after a long wait. It’s reached a price not seen in years, bringing it close to its previous all-time high. This could lead to a possible breakout. As more traders continue to take long on ETH, several key indicators are also going up, suggesting the price might keep rising.
Ethereum Inches Closer to Record High
Ethereum’s recent price jump has led to a wave of liquidations in the market. According to data from Coinglass, about $252.5 million worth of ETH positions were liquidated in the past 24 hours. This includes $58 million from buyers holding long positions and nearly $194 million from sellers closing out their positions.
Meanwhile, the total value of ETH futures contracts (open interest) has climbed to $61 billion, up from $47 billion just a week ago. However, this rise is mostly due to the increase in ETH’s price. In terms of actual ETH, open interest is still 11% lower than the peak of 15.5 million ETH seen on July 27.
The annualized premium for ETH perpetual futures is currently at 11%, which is seen as a neutral level. When this number goes above 13%, it usually signals high demand for leveraged long positions, something that was last seen on Saturday. The fact that this premium isn’t higher now is interesting, especially considering how strong the recent price rally has been. It suggests that aggressive traders aren’t jumping in as much as expected.
Also read: Warning for FTX Creditors: Phishing Scam Hits Ahead of September Payouts
The recent price surge has brought the number of profitable Ethereum addresses close to a record high. According to data from IntoTheBlock, about 98.1% of all ETH addresses are now in profit. Since most holders are sitting on gains, there’s a higher risk of a price drop if many of them decide to sell and take their profits.
What’s Next for ETH Price?
Ether began a new upward move after buyers pushed the price above $4,350. Currently, the ETH price is on a strong upward trend as it holds above EMA trend lines. As of writing, ETH price trades at $4,656, surging over 5.2% in the last 24 hours.
The rising moving averages and the RSI being in the overbought zone suggest that the trend is still pointing upward. Buyers are likely aiming to push the ETH/USDT pair toward $4,900.
On the downside, the key support level to watch is EMA20 trend line. If the price falls and closes below this level, it could signal that traders are taking profits. In that case, ETH might drop further toward the $4,000 level.
As the RSI now hovers within the overbought zone at level 75, we might see a heated market sentiment. As a result, ETH price might soon trigger a downward correction to cool down the current sentiment.
