The burgeoning crypto market is currently fostering steady prices for Ethereum (ETH), with a considerate firming remaining at spot rates above the $2,000 level. A range of factors, including increased demand and favourable investor sentiment, indicate a potential continuation of this existing trend.
Detailed analysis stemming from Kaiko’s data as of November 12 revealed a noticeable shift in the ETH-BTC ratio, evoking signs of a reversal following an extended duration of reductions. In addition, a marked escalation in trading volume was reported, indicating that crypto derivative platforms’ funding rates had reversed from negative to positive.
By November 13, Ethereum displayed remarkable steadiness, trading around the $2,090 mark. Despite the volume’s plausible decline in the trading segment over the last few days subsequent to the November 9 rally, the upward trend clearly persists.
Technical analysts are keeping a close eye on the immediate support level, which nests firmly at $2,000 and signifies the extraordinary highs of July 2023. In contrast, a crucial liquidation juncture resides at the $2,100 zone, representing the April peak – a threshold that must be surpassed for bullish investors keen on a purchase trend continuation pattern.
Ethereum’s future trajectory is very much in the hands of traders. The ongoing uptrend’s endurance mainly hinges on trading sentiment and whether existing fundamental elements can instigate increased demand, propelling Ethereum to unprecedented 2023 highs. Despite enduring enthusiasm from the Ethereum support base, Ethereum, unlike its crypto rival Bitcoin (BTC), is finding hurdles in surpassing key resistance levels observed in the first half of 2023.
Upon examining the ETHBTC daily candlestick arrangement, a sharp Ethereum reversal on November 9 appears to be the harbinger of the next upward leap, suggesting a potential shift favoring Ethereum buyers. Thus far in 2023, Bitcoin bulls have managed to maintain the upper hand.
Regarding quantification, Bitcoin has surged 33% versus Ethereum, primarily attributed to the dramatic sell-off of October 23, which lifted Bitcoin to its 2023 peak against the second most valuable cryptocurrency. However, Ethereum’s brisk recovery on November 9, coupled with the Bitcoin bulls’ failure to reverse losses, seems to provide Ethereum with an advantage.
Further analysis reveals that ETHBTC prices are trending within the bullish engulfing bar of November 9, despite light trading volumes, indicating a net positive for optimistic Ethereum investors.
The bullish trend is further reinforced by the fact that Kaiko’s analysis indicates a positive funding rate of the ETHUSDT pair, implying escalating demand within the crypto derivatives market. The transition from negative to positive funding rates signifies that ‘long’ traders are paying their ‘short’ counterparts to retain their positions open, hinting that more traders are banking on Ethereum with an expectation of price hikes in the coming trading sessions.