Ethereum within 6.4% of all-time high, consistent sell-offs from retail traders.

Ethereum within 6.4% of all-time high, consistent sell-offs from retail traders.

Ethereum (ETH) has made significant strides in its price performance, currently trading at $4,800, which is just 6.4% shy of its all-time high of $4,827 set in November 2021. The recent surge in ETH's price has been driven by strong buying momentum, with the asset seeing an 18% weekly gain and surging above the $4,000 mark. This has triggered substantial short liquidations, totaling $184 million in the past 24 hours, according to data from Coinglass [1].

The increased price momentum is supported by rising futures open interest, which has climbed to $51.61 billion, a 10% increase from the previous day. This indicates growing market conviction and renewed confidence from large investors [1]. Additionally, the resurgence of institutional interest has been evident, with ETH-backed exchange-traded funds (ETFs) recording inflows totaling $326.83 million between August 4 and 8 [1].

Despite the bullish outlook, ETH's price has been subject to consistent sell-offs from retail traders. This is reflected in the recent price action, where ETH has been trading around $4,160, maintaining a support level near $3,909. Should this support strengthen, ETH's price could rally toward $4,430, potentially testing and breaking through that resistance. However, if buying pressure weakens, ETH may lose steam and reverse its current upward trend, potentially falling to $3,340 [1].

The surge in Ethereum's transaction volume has also been notable, with daily transactions reaching 1.87 million, nearing the all-time high of 1.96 million set in January 2024. This increase is primarily driven by stablecoins USDC and Tether, as well as decentralized exchange Uniswap. The passage of the GENIUS Act and the approval of multiple ETFs have boosted market confidence and liquidity, contributing to the increased on-chain activity [2].

In conclusion, while Ethereum's price has shown resilience and strong momentum, it remains vulnerable to sell-offs from retail traders. The continued institutional interest and regulatory developments provide a supportive backdrop, but investors should remain cautious and monitor the asset's price action closely.

References:
[1] https://beincrypto.com/ethereum-price-all-time-high-projection-analysis/
[2] https://decrypt.co/333850/ethereum-transaction-volume-usdc-tether-uniswap