Ethereum (ETH) has seen a notable upswing in recent days, paralleling the bullish trends of Bitcoin (BTC) and Gold. Currently, with an approximate fully diluted valuation of $541 billion, Ethereum’s value surged over 4% in the last 24 hours, peaking at around $4,517, before settling back to approximately $4,485.
This recent price surge aligns with a broader bullish sentiment in the cryptocurrency market, where over $470 million was liquidated from leveraged trades within the same timeframe.
Key Factors Behind Ethereum’s Price Surge
Historical Bullish Momentum in October
October has historically been a profitable month for Ethereum, often showcasing significant price increases. Analysts are optimistic for a bullish rally in the fourth quarter, reminiscent of the remarkable cryptocurrency surge experienced in 2017.
Possible Impact of a Short Squeeze
The recent bullish sentiment has resulted in a significant liquidative pressure on short sellers, with around $129 million in Ether’s leveraged market being liquidated in the past 24 hours, over $106 million of which involved short positions. This short-squeeze dynamic could further contribute to a price spike.
Increased Demand from Whale Investors
Whale activity is an essential factor in Ethereum’s price movements. Data from CoinGecko shows that prominent entities, led by BitMine, have amassed over 4 million ETH—valued at nearly $18 billion. Additionally, recent market data from SoSoValue indicates that U.S. spot Ether ETFs acquired around $80 million worth of Ether just yesterday.
What Lies Ahead for Ether Price?
From a technical perspective, the recent price action has seen ETH successfully maintaining a position above a crucial support/resistance level at approximately $4,200. However, crypto analyst Ali Martinez has pointed out a potential barrier, noting that ETH faces significant resistance at around $4,505.
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