- The ETH price reached a high of $3,030.
- Liquidation rose to its highest in weeks.
After several weeks of both upward and downward trends, Ethereum [ETH] surpassed the $3,000 price threshold. Speculation has arisen regarding the possibility of ETH entering a double-digit price range. Is this the beginning of such a movement?
Ethereum enters the $3,000 range
Following a three-day consecutive uptrend, Ethereum breached the $3,000 price mark on the 20th of February. The daily timeframe chart showed a 3.35% increase, closing at approximately $2,880 on 18th February, followed by a 2.22% rise on 19th February, closing around $2,944.
However, on 20th February, a 2.38% gain propelled the price to around $3,014, reaching a peak above $3,030.
Source: Trading View
Notably, this marked the first instance since April 2022 that ETH traded at such levels, reminiscent of the bullish trend observed in 2022 before the market downturn.
At the time of this writing, Ethereum’s value had retreated by about 2.7%, pulling it below the $3,000 threshold to trade around $2,930.
Furthermore, this recent price decline has corresponded with a decrease in the Relative Strength Index (RSI). Initially surpassing 80 during the price surge, the RSI was currently around 73.
Despite the setback, this suggests that Ethereum was still in a bullish trend, albeit in an oversold zone.
Ethereum liquidation rises to highest in weeks
Ethereum price’s volatility in its attempt to surpass the $3,000 range resulted in a significant surge in liquidation volume on 20th February.
Analysis of the liquidation chart on Coinglass showed that each of the positions (long and short) experienced a total liquidation volume of over $20 million.
Specifically, long positions witnessed a liquidation volume of $20.56 million, while short positions faced a higher liquidation volume of $32.77 million.
The combined liquidation on 20th February was over $53 million, marking the first occurrence of such high volume in weeks.
More ETH volume leaves exchanges as sellers dominate
Examining the Ethereum volume chart on Santiment showed that despite the price rise on 20th February, there was no significant movement in volume.
By the conclusion of that day, the volume stood at around 20.3 billion, which was lower than the volume observed on the preceding day when the price was lower. However, at the time of this writing, the volume had increased and was nearing $21 billion.
While this might suggest seller dominance, an analysis of the ETH Netflow volume presented different signals.
A review of the exchange Netflow volume on CryptoQuant showed that by the end of 20th February, the flow was positive, with almost 770 ETH entering exchanges.
Nonetheless, at the time of this writing, the flow had turned negative. It showed that about 25,000 ETH have already exited exchanges.
Source: Crypto Quant
Should a double-digit price be expected?
There is a growing narrative surrounding Ethereum’s potential ascent into double-digit price territories. This narrative is fueled in part by recent ETF proposals from major institutions such as Blackrock.
The approval of these proposals could lead to an influx of additional capital, akin to the trend observed in Bitcoin. However, similar to Bitcoin, the impact may take time.
Realistic or not, here’s ETH’s market cap in BTC terms
Analysis using the Fibonacci retracement provides insight into potential price levels based on Ethereum’s current high and low trends. The chart indicates that the Fibonacci tool foresees a price range capped at $4,700 with a 200% increase.
This suggests that the journey towards a double-digit range may commence once Ethereum enters the $4,700-$5,000 price range.
Source: Trading View
