Analysts warn of Ethereum correction
Ethereum, the second-largest cryptocurrency, topped the $3,500 mark on November 25 for the first time since July, according to TradingView data.
Ethereum, the second-largest cryptocurrency, broke the $3,500 barrier for the first time since July on November 25, according to TradingView data. At the time of writing, Ethereum has slipped back to $3,384.
After a brief weekend dip, Ethereum staged a strong recovery, even outperforming Bitcoin. In the ETH/BTC chart, it showed a daily gain of 3.7%.
Analysts at Singapore-based trading firm QCP Capital point out that “the market expects Bitcoin to move sideways through December, while attention in the short term shifts to Ethereum.”
With the breaking of the psychological $3,500 level, the next target of $4,000 comes into view. Yet some on-chain analysts warn of possible overheating. The recent surge is largely attributed to a rise in leveraged positions in the derivatives market, worth as much as $1 billion.
According to Maartunn, an on-chain analyst at CryptoQuant, this signals “an elevated risk in the market,” as he explains on X (formerly Twitter).
