Ethereum starts 2024 on a strong note, rises to $2,400

• ETH’s buying pressure was stronger than its selling pressure.
• A technical analyst highlighted ETH’s strong upside potential.

Ethereum [ETH] started 2024 on a smashing note, reaching $2,400 for the first time since May 2022.

The second-largest crypto made gains of 5.56% in the last 24 hours of trading, according to CoinMarketCap, setting the stage for what many participants view as the inevitable super rally.

The New Year’s Day rally

According to AMBCrypto’s analysis of CryptoQuant’s data, Ethereum’s Taker Buy Sell Ratio stormed into the green territory as indicated below.

This indicated that buying pressure was stronger than selling pressure, and more buyers were willing to buy coins at a higher price. Historically, this has been viewed as a bullish signal.

Source: CryptoQuant

But the party may just be starting. Noted technical analyst Ali Martinez pinned hopes on Ethereum to make further gains. He stated,

“The path ahead of ETH is clear, with no significant supply barriers in sight, suggesting a potential rise to $2,700 or beyond. Additionally, a robust demand wall at $2,000 provides solid support, potentially cushioning any corrections.”

AMBCrypto’s reading of Hyblock Capital’s data echoed this sentiment somewhat. The market sentiment was one of greed, implying that there was a likelihood of more accumulation, and hence, a price increase.

Source: Hyblock Capital

Whales weren’t the drivers

In a rather surprising observation, the latest rally was not carried by whale investors. The number of large transactions stayed muted on the first of January, AMBCrypto detected using Santiment’s data.

Source: Santiment

Similarly, no noticeable spike was observed in the holdings of user cohorts having more than 1,000 ETH.

Source: Santiment

Read Ethereum’s [ETH] Price Prediction 2023-24

Speculative bets on ETH jump

As ETH rallied, the eyes of derivatives traders lit up. The Open Interest (OI) in ETH futures contracts surged to $8.16 billion, representing an increase of 7.41% in the last 24 hours, AMBCrypto observed using Coinglass’ data.

Source: Coinglass

Moreover, the number of individuals holding long positions exceeded those betting on price declines in the last 24 hours. The Long/Short Ratio went above 1 for the first time since the 27th of December.

Source: Coinglass