Ethereum (ETH) has finally broken out of its resistance level at $2,650, indicating a potential upward trend for the second-largest cryptocurrency. After establishing a strong support range between $2,223 and $2,320 following the crypto crash on August 5, Ethereum has surged by over 3% in the last 24 hours to retest a critical resistance point near $2,748. With a fully diluted market cap of approximately $328 billion and a daily trading volume of $16.2 billion, Ethereum is showing signs of a bullish rally.
In a surprising turn of events, Ethereum has outperformed Bitcoin (BTC) for the first time in several weeks. While Bitcoin has been teasing its $69k mark since July, Ethereum’s performance has been more robust, setting the stage for a potential altcoin season.
Why is Ethereum gaining ground over Bitcoin?
Altcoin Season Soon: After a strong performance throughout 2023, Bitcoin’s growth may soon be overshadowed by the altcoin market, with Ethereum leading the charge. Investors are increasingly favoring Ethereum due to its deep liquidity and expanding use cases in the Web3 space. Many are anticipating a major altcoin season, with Ethereum poised to retest its all-time high as a key catalyst.
Whale Activity and ETF Inflows: Ethereum’s market has seen steady growth driven by increasing demand from whale investors. In the U.S., spot Ether ETFs, led by BlackRock’s ETHA, have recorded positive cash inflows for the third consecutive week since receiving approval from the U.S. SEC in July. Despite a $78.89 million inflow last week, the cumulative net cash inflow for U.S. spot Ether ETFs remains at a negative $479.9 million, showing improvement from previous figures.
Technicals Look Positive: From a technical perspective, Ethereum appears well-positioned for a significant rebound. Veteran trader Peter Brandt has noted that Ethereum recently broke out of a symmetrical triangular pattern, signaling a shift in market sentiment. Additionally, Ether’s price against the US dollar has rebounded from a potential head and shoulders (H&S) pattern in the daily time frame. Ether’s price against Bitcoin has also rebounded from a double bottom, accompanied by a rising divergence on the Relative Strength Index (RSI).
With the crypto market moving quickly, it’s essential to stay updated on the latest developments. Stay tuned for more updates on potential opportunities in the market.