The past week has been an emotional rollercoaster for Ether (ETH) traders, as there were seven four-hour candles of a 10% or larger price movement.
Furthermore, the most recent 30% drop to $920 triggered $550 million in liquidations on long futures contracts. To complicate things even further, this current price correction is taking place just four weeks ahead of the launch of CME’s ETH futures.
ETH/USD 4-hour chart. Source: TradingView
It’s possible that even the most bullish Ether traders did not expect an 85% rally to occur in just eight days. During that short timespan, the top-ranked altcoin blasted through the $800 resistance and quickly climbed to $1,350, which is only 5% below its all-time high.
In 2017, Ether’s swift climb to $1,400 was primarily backed by the initial coin offering boom, but this time a different set of factors drove Ether’s price higher. Many DeFi platforms rely on the Ethereum network, and Ether is the most common asset