Ethereum Price Targets $3,800 Rally as Bulls Mount $1B Leverage
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Ethereum price opened trading at an 18-day peak of $3,650 on Sunday January 5. Derivatives markets data shows ETH traders mounting additional leverage LONG positions, anticipating further gains in the week ahead. Ethereum price advances above $3,600 as traders brace for more bullish action Ethereum price has been on an upward trajectory since the start of 2025, mirroring the crypto market recovery. Compared to the likes of Solana (SOL), Cardano (ADA) Avalanche (AVAX) which recorded gains in excess of 20% and ETH price gains was relatively subdued as ETH ETFs recorded negative outflows of $32.4 million last week. ‘ Ethereum price action (ETHUSDT) Despite sluggish ETF demand, ETH price continued its impressive rally on Sunday, pushing its 2025 gains into double digits. As shown in the chart above, ETH began trading on January 4 at $3,656, marking an 11% increase from its 2025 opening price of $3,310. Bull traders deploy $1B leverage as crypto rally enters Day 5 Having breached the psychological resistance at $3,600, recent derivatives market trends shows a significant boost in investors confidence. ETH bull traders displaying aggressive trading activity, signalling widespread expectation of more price in the week ahead. In alignment with this narrative, Coinglass’ Liquidation Map chart below compares the value of LONG leverage positions to active SHORT contracts. This provides insights in real-time swings traders’ short-term sentiment. Ethereum Liquidation Map | Source: Coinglass The chart above shows that ETH bulls traders have mounted leverage LONG contracts worth $1.09 billion around the current prices. In contrast, active SHORT futures contracts amount to $835 million, 30% lower than the bullish positions. Such a wide disparity reflects overwhelming positive sentiment among speculative traders, anticipating that Ethereum’s ongoing rally will persist in the week ahead. With bull traders displaying high risk trading behaviour in the derivatives markets, in…
Filed under: News - @ January 5, 2025 10:26 am