Ethereum price continued its upward trend today, December 9th, reaching its highest level since November 13th and 30% above the November low.
summary
- The price of Ethereum has rebounded in recent days due to increased demand.
- The token is about to flip the Supertrend indicator from red to green.
- Ether short liquidations rose to more than $120 million on Tuesday.
Ethereum (ETH) tokens soared to a high of $3,380 as crypto markets rallied ahead of the Federal Reserve’s interest rate decision scheduled for Wednesday.
The coin is rising as market participants raise the possibility of a rate cut. According to data from Polymarket and Calci, the probability of a reduction has jumped to 95%. In most cases, interest rate cuts usually lead to increased demand for risk assets such as cryptocurrencies and stocks.
As short liquidations surged, the price of Ethereum also skyrocketed. According to data from CoinGlass, these liquidations amounted to more than $120 million, making it second only to Bitcoin (BTC), which had $160 million in liquidations. Short-term liquidations occur when a leveraged position loses so much value that the collateral is no longer sufficient to meet margin requirements.
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Meanwhile, Ethereum’s funding rate has remained positive for the past few weeks. A positive funding rate means that crypto traders holding long positions pay fees to short sellers. This is a sign that we expect the token to continue rising in the short term.
Ethereum futures open interest has also bottomed out in recent days, suggesting it could start to recover, which could push the token higher.
The token also rose after Tom Lee’s BitMine continued to accumulate. The company purchased over $429 million worth of tokens, bringing its holdings to over $11 billion. The company’s goal is to own 5% of the supply over the long term. This purchase comes as the supply of ETH on exchanges continues to decline to record low levels.
Ethereum price technical analysis
Ethereum price chart |Source: crypto.news
The daily chart shows that ETH price has rebounded over the past few days and is currently hovering around November highs.
The token has moved above the upper bound of a descending wedge pattern, a common bullish reversal sign.
Also, the supertrend indicator is about to switch from red to green. The last time this happened was in July, after which the coin recovered to all-time highs a few months later. Such a move could push it above $4,000 in the near future.
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