Major breaking news as Ethereum climbs back above the $2k price level for the first time in close to a week. The top altcoin prices jumped 5% over the last 24 hours to peak around $2100.
ETH started the week on a positive note, with its price having increased by 5% to break above the psychological resistance level of $2k.
This pushes its total gains for the last seven days to 10%, even though it is down by more than 23% on the month-to-date chart.
With the price bump came massive trader activity, which spiked its daily trade volumes by nearly 80% to hit $11.69 Billion.
Join eToro today and receive $10 in free crypto on your first deposit. Trade crypto, stocks, and ETFs with powerful tools and social investing features like CopyTrader™
Donʼt invest unless youʼre prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more at https://etoro.tw/44JRWLY
Why is ETH Rallying Today?
Two key factors may be attributed to ETH’s promising price action over the weekend.
First was the reports that top investors had embarked on a buying spree, all trying to catch the dip.
It for instance was revealed that Blackrock now has more than $1 Billion worth of ETH in anticipation of a rebound.
This, and the fact that ETH closed last week on the positive – above $1900, had analysts and investors convinced that ETH had hit cycle bottom and can only face up moving forward.
Secondly, the buying pressure that helped push ETH prices above $2k has also been coming from retail investors who are looking to cash in on the upcoming Pectra upgrade.
Looking back, you will realize that some of ETH’s woes can be traced back to the failed rollout and eventual postponement of the Pectra upgrade.
Investors Optimistic About ETH’s Price Action
Onchain analysis of the top altcoin reveals there is growing optimism around the top altcoin’s next price action. For example, the amount of Ethereum ETF net outflows has been reducing gradually, from $335 Million four weeks ago to slightly above $100 Million last week.
Data from Coinglass also indicates that Ethereum has a positive open interest (OI) weighted funding rate.
This implies that the number of long-term investors who are confident that ETH prices will increase is higher than that of investors who expect it to clip further. Both metrics hint at a possible bullish reversal for Ethereum.
And now that Ether price has surpassed the psychologically important $2,000 level, the buying pressure can be expected to sustain into the coming weeks and months.
Should you Buy ETH whilst it’s under $3,000?
Yes, today could be a great opportunity to buy ETH. Several reputable analysts and notable investors see Ethereum reach and surpass $3,000 and some event expect it hit over $10,000.
Therefore, today’s trading price could present a great opportunity to buy ETH.
