Ethereum Surpasses $3,000 Twice, Bullish Trend Continues
In Brief
Ethereum has surpassed the $3,000 mark for the second time in February. This price increase has simultaneously led to a rise in the supply of Ethereum in profit. Despite a brief decline, open interest remains above the $10 billion mark, indicating a positive sentiment among investors.
Ethereum Cracks the $3,000 Mark Again
After several days below this threshold, Ethereum has once again reached the $3,000 price range. This shift has simultaneously led to a rise in the supply of Ethereum in profit. The analysis of Ethereum’s daily timeframe shows a modest increase of 2.43% on February 24, bringing the price to about $2,992 at the end of the trading session. Ethereum then continued its positive trend, recording a further increase of 1.5%, bringing the price back into the $3,000 range. This was the second time this month that ETH has crossed the $3,000 threshold, a level that has not been observed for over a year.
Ethereum Remains in the Overbought Zone
These recent upward movements have also increased Ethereum’s Relative Strength Index (RSI). The RSI had previously experienced a decline and settled at 70. But at the time of reporting, it stood at 75. This suggests that Ethereum is still in a strong bull trend and is in the overbought zone at the time of reporting.
Ethereum Supply in Profit Rises to Monthly High
The total supply of Ethereum in profit has been steadily growing in recent weeks, with the rise above the $3,000 mark contributing significantly to this. An analysis of the supply data on Santiment showed a notable increase of about 1 million ETH in profit in the last three days. At the time of reporting, the total supply in profit was 121.66 million ETH, compared to 120.18 million observed on February 23. This recent increase, albeit subtle, marks the highest point in over a year.
Positive Sentiment for Ethereum
On February 22, Ethereum’s open interest reached $10.8 billion according to Coinglass, the highest level in months. Although there was a subsequent decline, open interest remained in the $10 billion range. At the time of reporting, ETH’s open interest had experienced a slight uptick and stood at about $10.4 billion. This suggests a positive sentiment, indicating that more investors are entering the market and leading to increased capital inflow into the Ethereum network.
Our Assessment
Ethereum’s recent movements suggest a continuation of the positive trend. The crossing of the $3,000 mark and the increase in the supply in profit are positive signs for the network and its investors. Despite a brief decline, open interest remains high, indicating a persistently positive sentiment among investors. It remains to be seen how Ethereum will develop in the coming weeks.
Sources: Santiment, Coinglass, TradingView, Adewale Olarinde, Saman Waris.
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
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