Ethereum Gains Outpace Bitcoin, Dogecoin Over Labor Day Weekend: Analyst Says Apex Crypto's Near-Term Outlook 'Not Looking Good'

Zinger Key Points
  • Investors look forward to speeches from Fed presidents and rate hike decisions by ECB
  • Glassnode says liquidity continues to fade amid the rise of the greenback
  • Crypto data provider, Kaiko, says build up of short positions in ETH has been liquidated

Major coins rose Monday evening as the global cryptocurrency market cap rose 0.3% to $988.35 billion at press time.​​

Price Performance Of Major Coins
Coin 24-hour 7-day Price
Bitcoin BTC/USD 0.5% -1% $20,015.73
Ethereum ETH/USD 4.4% 6.6% $1,643
Dogecoin DOGE/USD 2% 1.2% $0.06
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency 24-Hour % Change (+/-) Price
TerraClassicUSD (USTC) +25.8% $0.04
Ethereum Classic (ETC) +26.45% $40.92
Ravencoin (RVN) +12.8% ​​$0.04

See Also: Best USDC Interest Rates

Why It Matters: 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 going into a new trading week after the Labor Day weekend.

Cryptocurrency trader Michaël van de Poppe tweeted “Much strength on” Ethereum Monday in response to the rise of the second-largest coin by market cap. 

This week the investors will look forward to speeches from Federal Reserve presidents and will keep an eye on rate hike decisions by the European Central Bank.

Bitcoin’s potential fall from the $20,000 level was labeled “really damaging,” by Craig Erlam, a senior market analyst at OANDA. 

“The following key level below here being the June lows around $17,500. Considering the outlook for risk appetite in the near term, it's not looking good,” said the analyst, in a note seen by Benzinga.’s “Crypto Fear & Greed Index” flashed “Extreme Greed” at press time. Last week the index registered “Fear.”

Glassnode said in a blog post that liquidity continues to fade from all asset markets with the rise of the dollar. The on-chain analysis firm said that periods of Bitcoin “price elation” have faced “aggressive distribution from the largest of investor classes, as the search for exit liquidity persists.” 

Even so, hodler conviction is intact but the market conditions are testing the weakest hands: short-term holders.


“It appears that the majority of daily trade volume and churn is being driven by recent buyers, as they jostle for the best entry,” said Glassnode.

Meanwhile, open interest in Ethereum has retracted after hitting all-time highs. Kaiko Research said it has traced a pullback in open positions from 5.1 million ETH in open contracts to nearly 4.7 million between the beginning of the month and Monday morning. 

The cryptocurrency data provider said it was possible that a buildup of short positions has been liquidated as the price of ETH went up.

Read Next: Jim Cramer Says Stay Away From Dogecoin And Shiba Inu, Making Money In Crypto Doesn't Mean It's For Real

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