Ethereum Price to Reverse Supertrend, Short Liquidations $120 Million

Ethereum price continued its uptrend today, December 9, the highest since November 13, and 30% above the November low.

The Ethereum (ETH) token rose to a high of $3,380 as the crypto market bounced back ahead of the Federal Reserve’s interest rate decision scheduled for Wednesday.

The currency rises as market participants increase their chances of a downgrade. Data from Polymarket and Kalshi show that the chance of a cut has risen to 95%. In most cases, a cut usually leads to increased demand for risky assets such as cryptocurrencies and stocks.

Ethereum’s price also soared as short liquidations soared. CoinGlass data shows that these liquidations have risen to over $120 million, second only to Bitcoin (BTC), whose liquidations reached $160 million. Short liquidations occur when leveraged positions lose so much value that their collateral is no longer sufficient to meet margin requirements.

Meanwhile, Ethereum’s funding rate has remained positive in recent weeks. A positive funding rate means that crypto traders with long positions pay a fee to short sellers. It’s a sign that they expect the token to continue rising in the near term.

Ethereum futures open interest has also bottomed out in recent days, suggesting it could rebound, giving the token a boost.

The token also rose after Tom Lee’s BitMine continued its accumulation. The company purchased tokens worth over $429 million, bringing its holdings to over $11 billion. The company hopes to eventually own 5% of the supply. This purchase is taking place as the supply of ETH on exchanges continues to fall to record lows.

Technical analysis of Ethereum prices

The daily chart shows that the ETH price has recovered in recent days and is now hovering at November’s highest levels.

The token has moved above the upper boundary of the falling wedge pattern, a common bullish reversal sign.

It is also about to change the Supertrend indicator from red to green. The last time this happened was in July and the currency recovered to an all-time high a few months later. Such a move could push it to over $4,000 soon.