Ethereum (ETH) has been on an incredible tear, rising more than 44% in the past three days alone. Analysts are all atwitter with conjecture off this monster rally. Some have speculated that the second largest cryptocurrency, by market value, is on its way to a price target of $10,000. A combination of global optimism and unmatched institutional demand in the crypto market has been the primary catalyst driving the surge. That’s an amazing return story for Ethereum.
Ethereum's Spectacular Price Rally
During the same period, Ethereum saw price appreciation from $1,807 on May 8 to well above $2,600 by May 10, representing a dramatic rebound. This catalyst has brought most Ethereans back into the profit on their investments, providing one of the strongest turns in market sentiment. The second highest crypto by market cap has now blasted past its realized price of $1,900 per address acquired. This leap is indicative of a renewed confidence in its potential to grow even further.
Long-time trader Peter Brandt, known for his aversion to all things crypto, has spotted a bullish Ethereum setup. Brandt’s reasoning shows that a breakout above the 3 year “congestion” pattern is very likely. If it does go through, Ethereum prices would explode to somewhere between $3,800 and $4,800. This rosy prestige moment has added to the momentum and investor excitement, helping the price rally to continue.
Futures Market Signals Strong Bullish Momentum
The Ethereum futures market seems to be corroborating the strong bullish sentiment that’s been surrounding the cryptocurrency. Open interest in Ethereum futures has seen a 42% open interest spike, nearing an all-time record $32 billion. The growth is truly astounding. It jumped from $21.3 billion to $30.4 billion between May 8 to May 11, highlighting enthusiastic participation and conviction in the crypto space led by institutional and retail investors.
The recent increase in open interest indicates that a larger number of traders are establishing new bullish positions, expecting prices to continue to rise. Futures market congestion usually indicates a looming price movement in the spot market. This continues to lend a bullish disposition for Ethereum. Institutional demand for Ethereum is as strong as ever. This was on full display in the previous trading week—the fund experienced inflows of $1.03 billion this past week—testifying to its popularity as an asset class investment vehicle.
Market Optimism Drives Ethereum's Ascent
Hank Huang, CEO of blockchain trading firm Kronos Research, laid Ethereum’s price increase on the shoulders of a larger global optimism wave.
Crypto rallied on a wave of global optimism. - Hank Huang, CEO of Kronos Research
Positive sentiment, Ethereum has positive sentiment, which increases its attractiveness. Coupled with its inherent strengths and potential applications, this creates a recipe for price appreciation. Ethereum/USD is indeed showing some strong bullish momentum. Now analysts and investors are starting to wonder about a potential price target of $10,000.
