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.

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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.

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