The price of Ethereum has recently experienced an impressive increase, gradually approaching $2,300. This increase made traders optimistic, but it also had a big effect on the derivatives market.
Traders who had bet down on ETH (short) lost a lot of money. This situation raises a major question: could a potential “short squeeze” push the price of ETH to exceed the threshold of $3,000?
Ethereum Market Analysis: ETH Seeking Support at $2,200
In November, the price of Ethereum remained well above $2,000. And it didn’t just stay there: it continued to climb, passing the $2,120 resistance and going beyond $2,200, at the same time as Bitcoin crossed $40,000.
The most notable moment in this development was when ETH reached $2,262, its highest level in months, before stabilizing and consolidating its gains.
This consolidation is manifested by the maintenance of the price of ETH above the level of 23.6% Fibonacci retracement, located between $2,147 and $2,229. Furthermore, a bullish trendline is visible on the ETH/USD hourly chart, with support near $2,190.
Currently, Ethereum is trading above $2,228, also surpassing the 100 hourly simple moving average, reflecting a general upward trend and favorable market sentiment.
What’s driving Ethereum’s price rise?
The Ethereum market is currently experiencing a dynamic and positive phase, mainly influenced by several key factors. Market analysis indicates that the uptrend started around the time BlackRock, a major hedge fund, made an Ethereum ETF filing.
This has significantly boosted investor confidence in the potential of Ethereum. And finally, the recent rise in Ethereum is also linked to what is happening with Bitcoin. Bitcoin has also seen a nice rise, passing the $40,000 mark this morning.
Ethereum Price Prediction: A Short Squeeze to Push ETH Toward $3,000?
The Ethereum cryptocurrency market is currently at a crucial crossroads, marked by the possibility of a “short squeeze”. Indeed, since traders who bet against the price rise (short traders) are currently suffering huge losses, they will be forced to buy more ETH to compensate for their mistake.
This will, in turn, have an impact on the price of ETH which could very quickly increase. If the losses of these traders continue to increase, the price of Ethereum could even reach $3,000.
However, ETH is facing significant resistance levels on its upward path. At the moment there is a big resistance around $2,220. If Ethereum cannot overcome these resistance zones, its price could fall again.
Thus, the key supports to watch in this scenario would be $2,190, $2,165, and one major support at $2,120. A break below $2,120 could mark the start of a more steady decline, with potential supports at $2,050 and, in a more bearish scenario, a return towards the $2,000 level in the near term.
Bitcoin Minetrix, cloud computing for mining Bitcoin
Bitcoin Minetrix is an innovative crypto project that is emerging in a context in which Bitcoin and Ethereum are experiencing strong growth. This new token, which is rapidly gaining popularity, is distinguished by its unique “Staking-to-Mine” model, which allows users to earn Bitcoin (BTC) simply by holding and staking BTCMTX tokens.
Only 3 days left for Stage 11 of #BitcoinMinetrix to conclude!
With an increasing number of nations delving into mining prospects, what impact do you anticipate on the worldwide economy and the #Crypto market? 🌍 pic.twitter.com/L1qh9q8DO1
— Bitcoinminetrix (@bitcoinminetrix) December 4, 2023
This approach offers an attractive alternative to traditional cloud mining platforms, as it presents a notably low barrier to entry, without requiring fixed contracts, hidden fees or complex setups.
Bitcoin Minetrix goes beyond simply staking tokens, allowing users to exchange mining credits to virtually mine Bitcoin, creating new revenue avenues for crypto investors.
An opportunity to seize
Additionally, the project offers attractive returns, with users able to lock their BTCMTX tokens into the staking pool to earn annual returns up to 130%.
With more than 327 million tokens already committed and a fundraising of more than $4.7 million in the pre-sale phase, Bitcoin Minetrix is attracting significant interest from investors. Finally, you can still buy the BTCMTX token at a pre-sale price of $0.012 per token.
Sources: Trading View / Bitcoin Minetrix
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This article does not constitute investment advice in any way. The information provided here should not be used as a basis for making financial decisions. Cryptocurrency investments involve risks and may result in significant losses. You should only invest what you can afford to lose and carry out your own research before making any investment decisions.