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Ethereum to $4000 – The main hurdle before ETH’s price target is…

2min Read

Ethereum spot market participants are not bullishly convinced yet, but there is a chance of a turnaround.

Ethereum to $4000 - The main hurdle before ETH's price target is...

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  • Ethereum noted a decline in bullish conviction in the Futures market
  • Coinbase Premium Index showed traders from the U.S are adamant about the altcoin

Ethereum [ETH] rallied swiftly from $3.2k to $3.7k, making a 16.2% move in three days. However, the bulls were rebuffed at the same near-term resistance from a month ago – $3.7k.

The local top coincided with a massive influx of ETH to exchanges on 8 April, according to AMBCrypto’s latest analysis. While the sentiment had been bullish, it has begun to shift over the last 24 hours.

U.S investors refuse to believe in ETH’s rally

ETH Coinbase Premium Index

Source: CryptoQuant

The Coinbase Premium Index represents the percent difference in prices (USDT pair) between Binance and Coinbase. This index has fallen since 5 April to show that Binance ETH prices were greater.

In other words, it reflected a lack of bullish enthusiasm from U.S investors, since they can’t trade on Binance and have to rely on Coinbase. Hence, despite the sharp bounce to $3.7k, sentiment west of the Atlantic has been muted.

ETH Santiment Metrics

Source: Santiment

The ratio of daily on-chain transaction volume in profit to loss metric from Santiment leapt to 3.01 on 8 April. Since February, this metric has faced a glass ceiling at 3. Therefore, traders could keep an eye on this metric’s daily readings to understand if a short-term price depression might be inbound.

Daily active addresses and network growth metrics saw a slump on 30 March. They continued to trend lower over the past ten days. This was a sign of a lack of user adoption and organic demand for Ethereum. It raised the question – What is the short-term sentiment like in the spot and Futures ETH markets?

Open Interest data supported idea of bearish market sentiment

ETH Coinalyze

Source: Coinalyze

When ETH faced rejection at $3.7k, the Open Interest also took a turn south. Over the last 36 hours, the OI has fallen from $10.6 billion to $9.72 billion. A drop in prices, alongside the Open Interest, seemed to be a sign of bearish sentiment.


Read Ethereum’s [ETH] Price Prediction 2024-25


The spot CVD also began to fall lower, but it has not retraced all the gains it made since the 8th. That being said, the period from 26 March to 8 April saw Ethereum’s spot CVD trend south. It highlighted that spot market participants were not bullishly convinced yet, but there was a chance of a turnaround should ETH break past the $3.7k-mark.

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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