Ethereum (ETH), the native symbol of the Ethereum blockchain, has recently shown significant gains after lagging behind the market-leading Bitcoin (BTC) for most of the current market cycle. However, Ethereum is now approaching a crucial resistance level of $3,500, and data suggests bulls may struggle to break through it.
According to a post on blockchain analysis platform CryptoQuant’s Quicktake by Amr Taha, the number of Ethereum tokens moving to derivatives exchanges is rising rapidly. This large influx often indicates that traders are opening short positions, which can hinder Ethereum’s bullish momentum.
Data from the Ethereum Exchange liquidation map shows that $1.93 billion of Ethereum long positions will be liquidated if the price drops to $3,100. Conversely, if the price reaches $3,100, more than $760 million will be liquidated from Ethereum short positions.
At the same time, the rate of burning of Ethereum is also increasing. The Ethereum network has two “engines” that burn ether when demand exceeds supply – burning block space and burning block space. As the amount of Ether burned rises, investors expect the altcoin to rise.
Ethereum hits highest
The value of Ethereum has risen dramatically in the past few weeks, rising 10.15% last week and 36.49% last month. Moreover, the digital asset has increased by 67.80% since November 2023 and has a market capitalization of $413.10 billion at the time of writing.
The second-largest digital asset is trading at $3,430.25, down 30.05% from its all-time high of $4,891.70, which was recorded in November 2021. The cryptocurrency surpassed $3,000 for the first time since July this year, and investors now hope to hit a new all-time high by the end of December.
Bitcoin and Ethereum stability will recover with the holiday season
QCP Capital reports that Bitcoin (BTC) has found stability above $93,000 as the holiday season approaches. This comes despite a recent decline that has pushed prices lower. The last $5.4M Bitcoin purchase from Micro strategy (MSTR) At $97,862 per bitcoin is now underwater, with the stock taking a 35% hit. However, QCP notes that MSTR found support at its 20-day exponential moving average, maintained levels above USD$350 and signaled potential resilience.
Ethereum (ETH) shows stronger recovery dynamics, gaining more than 4% while bitcoin fell 1.5% over the same period, according to QCP. This shift in momentum is reflected in the ETH/BTC pair, which rose 13% to 0.0366 from a post-election low of 0.0318. The QCP also noted that ETH also outperformed the Coindesk 20, which rose only 0.5%.
QCP also pointed to a significant rally in US stock markets after President-elect Donald Trump announced the appointment of Scott Biscent as Treasury Secretary. Wall Street responded positively, with the Dow Jones Industrial Average up 439 points (+0.99%) to 44,860. The S&P 500 broke the 6,000-point barrier, and the Nasdaq Composite gained 0.75%.
Biscent’s “Three Arrows” strategy – which targets a budget deficit of 3% by 2028, GDP growth of 3%, and a daily increase in oil production of 3 million barrels – has also lifted market sentiment. Its remarkable willingness to ease tariff policies fuels optimism and drives broad market gains, especially in risky assets.
QCP asserts that these developments reflect a shift in market flows and sentiment, with Ether gaining strength and equities benefiting from policy clarity. The cryptocurrency market remains prepared for potential volatility as macroeconomic and sectoral dynamics evolve.
Ethereum stability and calls for the creation of Bitcoin stock
The stability of the Ethereum price at the $3,400 level after the recent rally confirms a phase of consolidation. Resistance at $3,500 is key to future progress, as a breakout of this level signals renewed bullish sentiment among investors. In addition, the presence of support near the $3100 level indicates that traders are keeping a close eye on these levels for potential entry points.
Top cryptocurrency executives and investors are urging President-elect Donald Trump to create a national stock of bitcoin, a move that could more closely link the unregulated and volatile industry to the future of the country’s finances.
The Bitcoin market continues to see significant support near the $90.000 level during the early hours of Wednesday. In the end, this seems to be a market where traders are trying to get rid of some of the excess foam we’ve seen recently.
The value of Bitcoin rose slightly in the early hours of Wednesday as we continue to see a lot of hesitation. If you remember that I suggested over the last couple of days that we might see a little hesitation between $90,000 and $100,000 and I still think that and I still think it’s in the situation where despite the volume increase, I think it’s a lot of FOMO trading and that’s generally not enough to move the markets when you have institutions involved. However, if we can recover from here and I think we probably will, the $100,000 level will still be an important psychological barrier that many people have to watch out for.
Urge stakeholders closely monitor critical resistance and support levels. Ultimately, Buterin’s actions combined with the flexibility of the Ethereum market reflect a promising view of the future decentralized networks and their ability to adapt and thrive in a challenging environment.
