- If Ethereum continues to mimic the S&P 500, it could triple its value.
- Short interest persisted but the potential for ETH to rally remained evident.
Ethereum [ETH] has mirrored the S&P 500 index’s price movement, creating speculation that ETH could potentially surge in the long-term. The resemblance between ETH and the S&P 500 indicates optimism for a significant move upwards.
Currently, ETH still trades below its all-time high that was hit in November 2021, but the pattern hints that a possible bullish momentum is on the horizon.
Analysts speculated that this correlation to traditional markets could signal Ethereum’s ability to reach new heights.
Source: Ali/X
As ETH continues this trajectory, maintaining the S&P500’s course might propel it much higher, potentially leading to a major breakout.
The prospect of ETH tripling its value, surpassing its ATH of $4800, now hinges on sustained market support and similar movements in the S&P500.
Short leveraged positions pile up ahead of possible rally
ETH’s price faced growing short interest, with traders betting on further declines. However, history suggests that Ethereum’s price often rallies sharply when these shorts get cleared.
The recent surge in liquidations, as observed on the liquidation map, hinted at a significant price move.
Once Ethereum gains enough momentum, clearing these shorts, its price could quickly rally, possibly approaching new heights. Traders eyed ETH closely, predicting that once the shorts cleared, ETH would surge.
