Ethereum (ETH) price has seen a significant increase due to changing market conditions and investor behavior, leading to heightened interest from new buyers.
Short Squeeze Fuels Price Growth
A short squeeze occurred on the ETH/USDT pair, leading to a swift price increase of 2.9%. Over the course of a single trading day, the price of ETH jumped from around $3,756 to $3,837, as evidenced by a series of bullish 5-minute candlesticks. The short squeeze compelled traders to cover their positions, accelerating the buying activity.
Increased Demand from New Buyers
On-chain data from Glassnode indicated a sharp increase in Ethereum ownership among first-time buyers, with a 16% rise since early July. This uptick suggests a renewed inflow of capital entering the Ethereum market, contrasting previous periods dominated by long-term holders.
ETH/BTC Technical Indicators Suggest Possible Breakout
Technical patterns on the ETH/BTC hourly chart indicate a bullish pennant forming at the 0.032 mark. Historical consolidation scenarios on the same chart have led to bullish price breakouts, positioning the current trend for a potential upward movement as well.
The Ethereum price continues to show signs of recovery, supported by increased new demand and short-term technical patterns. This dynamic may suggest a stronger position for ETH compared to Bitcoin in the coming weeks.
