Ethereum price may flip Supertrend as shorts liquidations hit $120m

Ethereum price continued its uptrend today, Dec. 9, its highest point since Nov. 13, and 30% above its lowest level in November.

Ethereum (ETH) token soared to a high of $3,380 as the crypto market bounced back ahead of the Federal Reserve interest rate decision, scheduled on Wednesday.

The coin is rising as market participants boost their odds for a cut. Polymarket and Kalshi data show that the odds of a cut jumped to 95%. In most cases, a cut typically leads to heightened demand for risky assets like cryptocurrencies and stocks. 

Ethereum price also soared as shorts liquidations surged. CoinGlass data shows that these liquidations rose to over $120 million, second only to Bitcoin (BTC), whose liquidations hit $160 million. Short liquidations happen when leveraged positions lose so much value that their collateral is no longer sufficient to meet margin requirements.

Meanwhile, Ethereum’s funding rate has remained positive in the past few weeks. A positive funding rate means that crypto traders holding long positions pay a fee to short sellers. It is a sign that they expect the token to continue rising in the near term.

Ethereum’s futures open interest has also bottomed over the past few days, suggesting it may start rebounding, which could boost the token.

The token also rose after Tom Lee’s BitMine continued its accumulation. The company bought tokens worth over $429 million, bringing its holdings to over $11 billion. Its hope is to own 5% of supply over time. This purchasing is happening as the supply of ETH in exchanges continues to fall to a record low.

Ethereum price technical analysis 

The daily chart shows that the ETH price has rebounded in the past few days, and is now hovering at its highest level in November.

The token has moved above the upper boundary of the falling wedge pattern, a common bullish reversal sign. 

It is also about to flip the Supertrend indicator from red to green. The last time this happened was in July and the coin then rebounded to a record high a few months after that. Such a move may push it to over $4,000 soon.