- ETH’s buying pressure was stronger than its selling pressure.
- A technical analyst highlighted ETH’s strong upside potential.
Ethereum [ETH] started 2024 on a banging note, reaching $2,400 for the first time since May 2022.
The second largest cryptocurrency posted a gain of 5.56% in the past 24 hours, according to figures. CoinMarketCapwhich set the stage for what many participants consider the inevitable super rally.
The New Year’s Day Rally
According to AMBCrypto’s analysis of CryptoQuant’s data, Ethereum’s Taker Buy Sell Ratio stormed into the green area, as shown below.
This indicated that buying pressure was stronger than selling pressure more buyers were willing to purchase coins at a higher price. Historically, this has been seen as a bullish signal.
Source: CryptoQuant
But the party may just be starting. Well-known technical analyst Ali Martinez hoped for Ethereum to make further gains. He claimed,
“The path ahead for ETH is clear and there are no significant supply barriers in sight, indicating a potential increase to $2,700 or more. Additionally, a robust $2,000 demand wall provides solid support, potentially cushioning any corrections.”
AMBCrypto’s reading of Hyblock Capital’s data somewhat reflected this sentiment. The market sentiment was one of greed, implying that there was a chance for more accumulation and therefore a price increase.
Source: Hyblock Capital
Whales were not the drivers
It is quite surprising that the latest rally was not driven by whale investors. The number of large transactions remained moderate on January 1, AMBCrypto found using Santiment data.
Source: Santiment
Likewise, no noticeable spike was observed in user cohorts’ holdings of more than 1,000 ETH.
Source: Santiment
Read Ethereum’s [ETH] Price forecast 2023-24
Speculative bets on ETH jump
As ETH recovered, derivatives traders’ eyes lit up. The Open Interest (OI) in ETH futures contracts rose to $8.16 billion, marking a 7.41% increase in the past 24 hours, AMBCrypto noted using Coinglass data.
Source: Coinglass
Furthermore, the number of individuals with long positions exceeded the number who had bet on price declines in the past 24 hours. The Long/Short Ratio exceeded 1 for the first time since December 27.
Source: Coinglass