Ethereum Price Drops 20% In A Week, But Investors Are Still Bullish
Ether (ETH) experienced a 20% increase from March 3 to March 13, leading to a double top formation near $4,100.
After a 20% correction, Ether tested the $3,200 support on March 19. Analysts suggest the initial rally was fueled by overly leveraged long positions.
Ether’s bullish momentum faded following the forced liquidation of $375 million in ETH futures over the past week, but the question remains whether this is sufficient for Ether to stop the correction and potentially kick-start a bull run again.
Ether’s downturn was more pronounced than the broader cryptocurrency market’s performance, which saw its market capitalization peak at $2.77 trillion on March 14, stabilizing around $2.35 trillion, a 15.5% drop over five days.
Solana faced challenges with increased fees and failed transactions as the network struggled to manage the surge in activity. The Ethereum network underwent its most significant upgrade in over a year on March 13, coinciding with Ether’s price peak for the cycle in 2024.
The ETH perpetual contract funding rate approached nearly zero, suggesting a balance in demand between those holding long positions and those shorting.
(With inputs from Shikha Singh)
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