ETH price nears the $4,000 level, but derivatives data points to a slightly overheated market.
Ether (ETH) bulls are on a roll after the altcoin’s price surged by 13% in 7 days, reaching the $3,900 level for the first time since December 2021. The current $456 billion market capitalization distances Ether from its competitors. However, excessive leverage using ETH derivatives poses a risk to the current bullish momentum.
Ether bulls see a decent possibility of the current bull run culminating with a new all-time high, mirroring what Bitcoin (BTC) experienced on March 5, but excessive optimism poses a risk in terms of forced liquidations. To understand if $4,800 is a feasible target price for this cycle, one must first address the criticism and FUD that might limit Ether’s upside.
Besides the usual interpretation that the Ethereum network is not scalable, which has been partially solved through layer-2 solutions, some analysts cite dependence on the Ethereum Foundation and lack of regulatory clarity as reasons holding back Ether’s bullish momentum.
