Major coins rose late Monday as the global cryptocurrency market cap rose 0.3% to $988.35 billion at press time.
|Piece of money||24 hours||7 days||Price|
|Cryptocurrency||% change over 24 hours (+/-)||Price|
|Ethereum Classic (ETC)||+26.45%||$40.92|
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Why is this important: Ethereum led gains among major coins at press time, while Bitcoin showed modest gains and was above $20,000. Stock futures were in the green at press time ahead of another week of trading after Labor Day weekend.
Trader in cryptocurrency Michael van de Poppe tweeted “Much strength on” Ethereum on Monday in response to the rise of the second-largest coin by market capitalization.
Lots of strength on #Ethereum.
— Michael van de Poppe (@CryptoMichNL) September 5, 2022
This week, investors will be eagerly awaiting speeches from Federal Reserve presidents and will monitor the European Central Bank’s rate hike decisions.
Bitcoin’s potential drop from the $20,000 level has been called “really damaging” by Craig Erlamsenior market analyst at OANDA.
“The next key level below being the June lows around $17,500. Given the near-term risk appetite outlook, that doesn’t look good,” the analyst said, in a note. consulted by Benzinga.
Alternative.me’s “Crypto Fear & Greed Index” showed “Extreme Greed” at press time. Last week, the index registered “Fear”.
Glassnode said in a blog post that liquidity continues to fade across all asset markets with the rising dollar. The on-chain analytics firm said periods of Bitcoin “price elation” have been met with “aggressive distribution from the largest classes of investors, as the search for exit liquidity persists” .
Bitcoin, total supply held by long-term holders – Courtesy of Glassnode
Even so, the hodlers’ conviction is intact but market conditions are testing the weaker hands: the short-term holders.
Bitcoin, short-term supply at a loss – Courtesy of Glassnode
“It appears that the majority of daily trading volume and churn is being driven by recent buyers, as they jostle for the best entry,” Glassnode said.
Meanwhile, open interest in Ethereum has retracted after hitting all-time highs. Kaiko Search said it plotted a decline in open positions from 5.1 million ETH in open contracts to nearly 4.7 million between the start of the month and Monday morning.
Ethereum Open Interest and Funding Rate – Courtesy of Kaiko Research
The cryptocurrency data provider said it is possible that an accumulation of short positions was liquidated as the price of ETH rose.
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