Ethereum Market Depth Hits Multi-Year High, ETH Price to Surpass $4,000

Coingapestaff
April 11, 2024
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Crypto Price Prediction

Highlights

  • Ethereum briefly topped $4k in March, driving market depths to new highs.
  • Ethereum's liquidity on global centralized exchanges rises.
  • BTC & ETH OI hits ATH.

In a riveting turn of events, despite the Ethereum price showcasing a relatively slower movement compared to that of Bitcoin (BTC) and numerous altcoins, an intriguing phenomenon appears to have garnered noteworthy optimism on the world’s second-largest token by global market cap. According to a recent report, the Ethereum token seems to have demonstrated notable enhancements in liquidity on centralized exchanges globally.

This amassed significant attention on ETH, underscoring an increase in the availability of ETH tokens for trading on exchanges, further indicating heightened interest and activity surrounding the token within the exchange ecosystem.

ETH’s Liquidity: Diving Deep

Meanwhile, despite the token’s relatively slower price action, ETH’s improved liquidity flagged growing confidence and participation among traders and investors within the market. This could potentially contribute to the token’s long-term stability and market presence, adding a bullish tint to Ethereum amid the upcoming BTC halving.

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The 2% market depth, which measures the quantity of buy and sell orders across exchanges, has notably increased from a yearly low of $255 million in October to a staggering $400 million at present.

These developments indicate a resurgence of market makers, who facilitate trading by providing liquidity. It further suggests that traders are benefiting from improved market conditions, with more opportunities for buying and selling ETH.

Also read: Bitcoin Whale Sparks 800 BTC Selloff Fears Post-CPI Data Release

BTC & ETH OI Hits ATH

On the other hand, open interest in perpetual futures contracts for both BTC and ETH has surged to unprecedented levels in USD. Trading in perpetual contracts has shown steady growth since the start of the year, hitting a two-year peak in early March and subsequently surpassing previous record highs.

This further underscored a sense of heightened interest in the assets among crypto market traders and investors, adding to the token’s bullish take.

Also Read: Apple Pay Joins Coinbase for Secure UK Cryptocurrency Transactions

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.