In the past few hours, the cryptocurrency market has experienced a rebound after several days of trading within a narrow range. Bitcoin’s price surged past $63,000, pushing Ethereum close to the $3,000 mark. Despite this, the rising dominance of Bitcoin suggests a potential bearish pullback for altcoins. However, the current dip could be profitable for buyers, as Ethereum’s MVRV ratio hits a weekly low, indicating a possible buildup for a significant upward trend.
In the past few hours, the cryptocurrency market has surged, with Bitcoin’s price breaking above $63,000. This momentum has also driven Ethereum’s price close to $3,000. Data from Coinglass reveals that the market experienced approximately $6.6 million in liquidations, with Ethereum accounting for nearly $1.8 million in short liquidations.
Recent on-chain data shows an improvement in investor sentiment, likely driving the current rise in ETH prices. According to IntoTheBlock, the Open Interest ratio, which compares total open interest in futures to the spot market capitalization, has increased, suggesting bullish sentiment.
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The open interest ratio is now at 4.21%, up from a low of 3.3%. Historically, ETH prices tend to struggle to stay above $3,000 when the open interest ratio drops below 3.5%. The last time it fell to this level was on April 14. However, the current increase in the ratio could indicate strong trading interest.
Additionally, Ethereum’s MVRV ratio is falling, now at 1.55 from a peak of 1.74, suggesting the realized value is approaching the market value. This could be a good buying opportunity as market sentiment cools. Market cap is the total dollar value of circulating coins, using the average price across major exchanges. Realized value, seen as more accurate, estimates the total amount paid for all existing coins based on on-chain transactions.
ETH’s price has been attempting to surpass the resistance at $3,000, but bears are strongly defending this level. After dropping below $2,900 due to increased selling pressure, buyers managed to hold the price. Currently, ETH is trading at $2,956, a rise of over 1% in the past 24 hours.
A positive sign for the bulls is their success in keeping the price around $3,000, which could increase the chances of a breakout. If the ETH/USDT pair surpasses this level, it might test the next resistance at $3,200.
On the downside, key support levels are at the Fib levels. A break and close below $2,800 could indicate a consolidation phase between $2,800 and $2,500 for a few days.
The moving averages are trending downward, but the RSI surged above the midline, suggesting the bulls have an advantage. Buyers will aim to push the price above $3,200 to strengthen their position. A successful move above this level might send the price toward $3,586.
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