Ethereum Price Rises to $2,980
Ethereum (ETH) gained 5% on Friday, recovering after recent losses. The jump followed a volatile market move after the US inflation report.
The price rise was likely driven by derivative traders. The Taker Buy-Sell Ratio, which tracks buy and sell volumes in perpetual swap trades, increased from 0.906 on Tuesday to 1.05 on Friday. This is its highest since early December and signals strong bullish sentiment.
Open interest in Ethereum futures also rose by 400,000 ETH on Friday. This matches the rise in the Taker Buy-Sell Ratio and shows growing investor interest in ETH contracts.
US Investors Remain Cautious
Despite the price gain, US investor sentiment remains cautious. The Ethereum Coinbase Premium Index, which compares prices between Coinbase Pro and Binance, continues to fall. A low index value means weak buying from US traders.
Ethereum exchange-traded funds (ETFs) in the US have seen outflows for six days in a row since December 11. Total outflows have reached about $630 million.
Ethereum Faces Resistance at 20-Day EMA
Ethereum has seen $56 million in liquidations in the past 12 hours, mostly short liquidations. ETH is testing resistance again at the 20-day Exponential Moving Average (EMA), after holding support at a symmetrical triangle pattern since late November.
For ETH to move higher, it must break above the 20-day EMA and clear further resistance at the triangle’s upper boundary near $3,470. It also needs to cross the 50-day, 100-day, and 200-day EMAs on the way up.
If ETH falls below the triangle, it could find support around $2,620.
Technical indicators are mixed but show potential. The Relative Strength Index (RSI) and Stochastic Oscillator are near neutral levels. If they rise, ETH’s bullish momentum could strengthen.
