Ethereum and other smart-contract-related chains like Solana and Cardano are facing significant funds inflows since the beginning of the week. The increased demand for decentralized solutions could be tied to the return of risk-on tendencies on financial markets, per Santiment.
Ethereum bears are losing
After jumping above $3,000, Santiment data feed noticed a spike in the liquidation volume for short orders on the market. The spike above $3,000 put Ethereum bulls in a superior position over bears as it reached a three-week high.
? #Ethereum has enjoyed another leg up Wednesday, jumping above $3,000 after yesterday's first breach above this resistance level in three weeks. #Shorts were really piling up following yesterday's brekout, leading to plenty of $ETH liquidations today. https://t.co/cIOc62l3B8 pic.twitter.com/bp0eol3zte— Santiment (@santimentfeed) March 23, 2022
Besides a large liquidation volume, traders willingly removed their short orders from the market in order to neutralize their losses.
In addition to breaking the 50-day moving average, Ethereum broke through the descending channel formed in February. Indicators like the Relative Strength Index are also showing an upward tendency on Ethereum as it spikes above 60.
Market recovers from stagnation
According to Open Interest indicators, Ethereum and other cryptocurrencies are facing a recovery with the help of increased funding of derivatives like futures and options. Previously, U.Today noted that Bitcoin's funding rate increased gradually, which allowed Bloomberg analysts to predict future movement of the spot asset.
While Ether still has not broken through any major resistance level, it jumped above the 50-day moving average that remained unbreakable since the first test on the chart on Feb. 9.
At press time, Ethereum trades at $3,055, successfully holding up above the highlighted threshold. The market has not noticed major selling pressure yet, suggesting that the market still feels comfortable pushing various digital assets up. Ether's competitors, like Cardano and Solana, are also going through a mild bullrun with approximately 5% growth in recent hours.