Ethereum traders are increasingly confident that the altcoin’s price could soon recover significantly. This bullish sentiment is a subsequent reaction to what many are calling ETH’s bottom.
In this analysis, BeInCrypto explores the factors driving this bullish forecast and what it means for Ethereum’s short-term performance.
Ethereum Traders Bet Big
On September 15, Ethereum’s estimated leverage ratio (ELR)—a metric that shows whether traders are making high-leverage bets in the derivatives market—fell noticeably, signaling cautious market behavior. However, on September 16, the ELR rose to its highest level in a month, indicating a shift as traders began taking positions with higher leverage.
But why do they double at this time?
According to our findings, these risky bets may be due to the fact that ETH/BTC has reached its lowest point in more than three years. Crypto analyst and founder of Into the Cryptoverse Benjamin Cowan opined that this event could bring Ethereum closer to the bottom.
“It’s almost over. I think ETH/BTC will likely bottom out between 0.03-0.04 and then start rising in 2025. It could bottom out as early as this week or as early as December,” Cowan said.
The current funding rate reflects this positive outlook. A negative funding rate signals bearish sentiment and short selling, but ETH funding is strongly positive. This indicates that traders are willing to pay extra to hold long positions in anticipation of a rise to $2,800.
Read More: How to Buy Ethereum (ETH) and Everything You Need to Know
ETH Price Prediction: Breakout Coming
Ethereum price is currently around $2,310. On September 13, the altcoin attempted to break above $2,441 but was rejected. However, a bullish descending wedge has formed on the daily chart, signaling a potential breakout.
A falling wedge occurs when price makes lower swing highs and lower swing lows, creating a cone-shaped structure. If ETH breaks out of this pattern, it could indicate a strong move higher.
The Balance of Power (BoP) indicator, which measures the strength of buyers relative to sellers, supports a bullish outlook. The upward movement in the BoP shows that buyers are currently in control, meaning the next target for Ethereum could be around $2,744.
Read more: Ethereum (ETH) price forecast for 2024/2025/2030.
In a highly optimistic scenario, Ethereum could even surpass $2,800, reaching $2,918. However, if the bears regain control, the price could fall to $2,114, rendering this bullish forecast invalid.
