In the final week of June, Ethereum has experienced a significant spike in its price, breaking above and re-testing the crucial $2,500 mark. This surge in ETH price is driven by various factors that indicate a strong bullish sentiment in the market, although there are also warnings of potential short-term volatility as the cryptocurrency consolidates in the $2400-$2500 range.
Renowned analyst Degen Hardy has expressed caution, stating that he will maintain his long position on ETH as long as it stays above the $2,400 mark. He believes that a breach of $2400 could indicate a struggle for bulls to reclaim previous highs.
A recent report from a CryptoQuant analyst highlighted a shift in funding rates on Binance from negative to positive, suggesting that leveraged long positions are betting heavily on ETH’s price increase. While this indicates optimism in the market, it also raises concerns about overheating, which could lead to a short-term correction.
On-chain data also presents a cautionary note, with a significant inflow of 177,000 ETH onto Binance over three consecutive days. This movement of ETH onto exchanges suggests that large holders may be preparing to take profits or reallocate their assets, signaling potential selling pressure.
Despite the recent price surge, analysts like Hardy are wary of a possible correction in the short term if bulls fail to push higher. This could lead to a dip in the market to normalize the current funding dynamics. However, the long-term bullish outlook for Ethereum remains intact, indicating that any retracement may be temporary.
Looking ahead, if the lower border of the consolidation range is breached, ETH price could fall to the June 22nd low at $2120. On the other hand, breaking the upper border could set a minimum target of $2620 for Ethereum.
In conclusion, while short-term volatility may be on the horizon for Ethereum, the overall bullish trend of the cryptocurrency remains strong. Traders and investors should keep a close eye on market dynamics and be prepared for potential price movements in the coming days.