Highlights:
Ethereum (ETH), like the rest of the market, is showing signs of a rebound today. At press time, Ethereum was trading at $2,895.75, representing a 3.22% increase for the day. At the same time, Ethereum trading volumes are on the rise. When writing, Ethereum trading volumes stood at $27.45 billion, up by 14.35% in the day. This is an indicator that bulls are regaining control and that Ethereum could be headed much higher in the short to medium term. Multiple factors support a strong rebound for Ethereum, one that could push it to $3,000 or higher.
One of them is a broader market that is increasingly sending bullish signals. In the last 24 hours, the entire cryptocurrency market has made some gains from its recent lows. Bitcoin, the leading market indicator, has pushed from lows of $82k and is currently edging towards $90k. This sends a message that the worst may be over for the market. Such a change in sentiment from the recent doom-and-gloom scenario could see investors start piling back into the cryptocurrency market.
For Ethereum, the second-largest and most well-known altcoin, a rebound could see it attract more momentum relative to other altcoins. The result is that Ethereum could experience a rebound, potentially pushing its price to $3,000 in the very short term. In the long term, a sustained increase in bullish sentiment could drive Ethereum’s prices as high as $ 4,800.
At the same time, Ethereum is gaining momentum from the growing institutional interest. Recently, Bitmine Immersion Technologies, an organization associated with Tom Lee, announced that it was increasing Ether holdings to around 3% of the total supply. This is a significant development, as it removes a substantial amount of Ethereum from the market. As more organizations take similar moves on Ethereum, the supply and demand dynamics could favor a parabolic price rally for Ethereum.
The odds of such a rally are also evident in the fact that a high amount of Ethereum is staked, and the number of those staking is growing. Such moves give Ethereum a realistic chance to rally to prices above $10k going into the future. The impact of institutional ownership is already beginning to be evident.
Recently, Ethereum ETFs have experienced significant outflows, totalling around $2.2 million in the last 24 hours. During the same period, the price has increased. It points to institutional spot buying, creating a price floor for Ethereum.
Ethereum is also gaining traction due to the improving macro environment. The recent marketwide correction followed fears that the Federal Reserve may not cut rates in December. While a rate cut is not yet confirmed, the odds of a cut have now risen above 70%, up from recent lows of under 40%. This could trigger a rally across all assets as markets try to price in a possible rate cut. Confirmation of the cut itself could send Ethereum rocketing due to the increased liquidity flowing into financial markets.
Ethereum is making gains intraday and is pushing towards the $2,972.7 to $3,049.3 resistance level. If bulls can absorb all the selling pressure in this zone, a short-term rally to $3500 could follow.
Source: TradingView
On the other hand, if the selling pressure is too much, a correction could follow. In such a scenario, Ethereum could drop to around $2795.9 support in the short term. Of these two scenarios, a rally to 3500 is more likely. This is due to rising institutional demand and the possibility that a rate hike could be underway in December.
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ETHZilla CEO McAndrew Rudisill said the company’s strategy is to deploy Ether on the Ethereum network through layer-2 protocols and tokenizing real-world assets. Ether treasury company ETHZilla is looking to raise another $350 million through new convertible bonds, with funds marked for more Ether purchases and generating yield through investments in the ecosystem. ETHZilla chairman and CEO McAndrew Rudisill said on Monday that the company’s strategy is to deploy Ether (ETH) in “cash-flowing assets” on the Ethereum network through layer-2 protocols and tokenizing real-world assets. A growing number of digital asset companies are moving past simply holding crypto and looking to generate yields through active participation in the ecosystem, which crypto executives told Cointelegraph in August, could help spark a DeFi Summer 2.0.Read more

