Ethereum Shows Brief Rally Before Market-Wide Crypto Decline

Ethereum Rallies to $2,850 Amid Market Division and Memecoin Volatility

  • ethereum’s price briefly touched $2,850 before retreating to $2,730, maintaining a 2% gain while broader market declined.
  • Current ETH rally patterns mirror January-February movements that preceded significant market corrections.
  • Futures market shows growing trader interest in ETH, with 12% increase in open interest reaching 9.27 million contracts.
  • Memecoins LIBRA and BROCCOLI volatility affected rival layer-1 network tokens negatively.
  • Analysts divided on ETH’s movement: some see temporary rotation while others suggest potential long-term bottom against BTC.

Ethereum‘s price movement created market tension Monday as the second-largest cryptocurrency briefly rallied to $2,850 before settling at $2,730, maintaining modest gains while Bitcoin retreated from $97,000 to $95,500 during a holiday-thinned U.S. trading session.

- Advertisement -

The pattern mirrors concerning precedents from earlier this year. Similar price action in late January and early February preceded a significant market downturn, where ETH plunged 35% to near $2,000 after initially rising 10% to $3,400.

Market sentiment remains divided. CoinPanel CEO Aran Hawker downplayed the significance, telling CoinDesk: “ETH’s recent price action isn’t an outperformance — it’s more of a catch-up to where it should be.” However, LMAX Group strategist Joel Kruger suggested possible long-term implications: “There is evidence of ETH potentially wanting to finally put in a major bottom against bitcoin after downtrending since 2021.”

Futures market data from CoinGlass showed surging interest in ETH positions, with open interest climbing 12% to 9.27 million contracts (approximately $2.6 billion) across exchanges, primarily driven by offshore platforms Binance and Gate.io. Meanwhile, BTC futures saw only a 1% increase.

The broader cryptocurrency landscape faced additional pressure from memecoin volatility, particularly Argentina‘s LIBRA on Solana and BROCCOLI on BNB Chain – the latter inspired by former Binance CEO’s pet name revelation – which negatively impacted competing layer-1 blockchain network tokens.

- Advertisement -

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

- Advertisement -

Latest News

Tokenized bonds for welfare need compliance fix: exec

Blockchain technology can effectively administer government social benefit programs by speeding up digital delivery...

Bitcoin Bear Market Bottom Seen at $55,000: Report

CryptoQuant analysts report Bitcoin's "ultimate bear market bottom" price is approximately $55,000.The firm's market...

Figure Tech Breached via Employee Social Engineering

Fintech lender Figure Technology was breached via a social-engineering attack on an employee.The Hacking...

BRICS Launches “The Unit” to De-Dollarize Global Finance

The BRICS bloc, representing nearly half the global population and 40% of world GDP,...

HDFC Bank Stock in Rs 900-970 Range, Upside Seen Limited

HDFC Bank shares are expected to trade in a tight range between $10.8-11.6 (Rs...

Must Read

How to Buy VPN With Bitcoin Using CyberGhost VPN

In this step-by-step guide, you will learn how to purchase a VPN (Virtual Private Network) subscription using Bitcoin, a popular cryptocurrency, and CyberGhost VPN,...
🔥 #AD Get 20% OFF any new 12 month hosting plan from Hostinger. Click here!