A few reasons have been provided to explain this sudden upsurge of the largest cryptocurrency by market value:
Simultaneous rejections of major altcoins – Traders likely took profit from recent altcoin rallies and moved those gains to bitcoin triggering a price uptrend
$10, 200 is a heavy resistance level – This is suggested by the massive liquidation that occured at this price within a span of a few hours, which is less typical of bitcoin
While a few traders are optimistic about the uptrend, data on BitMEX shows that the majority of the market is taking long positions.
On the other hand, ETH funding rate seems to suggest that its rally is already overheating. Over the past one year, investors have been loading up on Ethereum long positions with Bitfinex alone recording 510 million today up from just over $50 million at the start of 2020. That is roughly a 900% increase!
As the DeFi sector growth continues to drive users and transaction volumes to the Ethereum blockchain, analysts say the Ethereum technical outlook is incredibly strong. The upcoming launch of Ethereum 2.0 is expected to keep this momentum.
3/ #DeFi Market Cap's Updated Rankings based on Circulating Supply: