Last night, the moment of the United States government announcing plans to establish a federal reserve in various crypto currencies kicked off a double-digit bounce back rally. As some crypto analysts took Donald Trumpโs first message of adding Cardano (ADA), Ripple (XRP) and Solana (SOL) as a signal for altcoin season, Ethereum (ETH) was initially left out.
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However, a follow-up post on X confirmed that the top altcoin Ethereum (ETH) is going to be โat the heartโ of the upcoming federal reserve. This has sparked a catch-up rally to $2,542 in the early hours of Monday, March 3, 2025. While the Ethereum price rally was nowhere near Cardanoโs (ADA) 60% upswing or Rippleโs (XRP) bull campaign towards $3.
Top Analyst Sets Target For Ethereum Price Rally
While Ethereum (ETH) backtracked 50% from the yearly peak of $4,015 on December 9, 2024, analysts are measuring the current Ethereum price rallyโs potential. Surviving the $2,100 key support level, Ethereum (ETH) is now trading in the lower boundary of a long-term parallel channel, according to season crypto pundit Ali Martinez.
Within this Ethereum (ETH) price channel, the largest Proof of Stake (PoS) blockchainโs native altcoin bounced off the lower boundary. Currently at $2,365, the Ethereum price rally is looking at $3,000 as the next target, according to Ali. If the bullish momentum continues, Ethereumโs $4,000 reclaim could replicate the price movement in November – December, 2024.
Etherโs 208% Upswing On Derivatives Explained
A massive outburst in Open Interest (OI) for Ethereum (ETH) on Derivatives markets served the Ethereum price rally a second breath, as the gigantic $78.46B volume marked a 208.7% daily increase. Despite the rise in unsettled leveraged plays on ETH, the real-time data from CoinGlass delivers an anomaly in total liquidations.
Out of $180 million Ethereum (ETH) leveraged position liquidations, $93.56 million were long, while the rest $86.57 million were short-selling placements. Uncanny for bounce back rallies, ETH long positions took up the bigger part of 24-hour liquidations.
Ultimately, this indicates crypto traders were expecting a bigger bounce back, using leverage to multiply theoretical returns. Breaking the action on Derivatives down by exchanges, Binanceโs customers were the most bullish on Ethereumโs price rally, outnumbering short-sellers 4.02:1.
Additionally, the daily Chaikin Money Flow (CMF) index turned positive at 0.15, signaling that whales could orchestrate a comeback. With large transactions on ETH already up by 4.20% since yesterday, the likelihood of Ethereum (ETH) coming back to $4,000 levels highly depends on whale confidence, as large investors are in control of 55% of circulating supply.
On The Flipside
- The acceptance of Ethereumโs main rivals Solana (SOL), Ripple (XRP) and Cardano (ADA) into the United States national crypto reserve could impose extra challenges for ETH due to fierce competition.
Why This Matters
Holding cryptocurrency as a portion of the national reserves underscores a shifting political stance towards crypto, acknowledging digital assets as long-term investment vehicles.
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