Ethereum (ETH), the second largest cryptocurrency, has seen a significant price increase over the past month. The recent bullish rush in the crypto market, coupled with BlackRock’s involvement, has pushed ETH to a year-to-date high of $2,139.
Ethereum surpasses Bitcoin and Altcoins
According to According to market data provider Kaiko, ETH has outperformed BTC and many altcoins in recent weeks, signaling a shift in market dynamics.
Kaiko’s report highlights how ETH has struggled to gain momentum over the past year, despite successful upgrades such as The Merge in April.
However, sentiment around ETH changed dramatically when BlackRock filed spot ETH exchange traded fund (ETF), leading to a reversal of the ETH to Bitcoin (BTC) ratio.
The impact on the market was significant, with ETH prices rising above $2,000 for the first time since April. In addition, daily spot trading volumes reached $7 billion, the highest level since the US collapse of FTX.
The ETH ETF story provided further impetus to the ongoing rally, boosted by improved global risk sentiment and falling US Treasury yields.
The dominance of altcoin + ETH volume vs BTC has risen to 60%, the highest level in more than a year. During bull rallies, altcoins typically increase in volume versus BTC.
This increase in demand has also led to a rising debt burden, as reflected in the recovery of ETH open interest to early August levels. Notably, BTC open interest has fallen over the past month due to liquidations Binancecausing the Chicago Mercantile Exchange (CME) to overtake Binance as the largest BTC futures market.
Additionally, ETH funding rates, a gauge of sentiment and rising demand, have reached their highest levels in more than a year, indicating a significant shift in sentiment. In November, the 30-day volatility of both BTC and ETH rose to 40% and 50% respectively, after a multi-year low of around 15% during the summer months.
Crypto Expert Predicts ETH Outbreak
Renowned crypto expert Michael Van de Poppe believes that ETH is on the verge of an important breakthrough. If Ethereum manages to cross the crucial resistance level at $2,150, this could mark the end of the bear market, according to Van de Poppe.
Drawing a parallel to Bitcoin’s critical $30,000 barrier, Van de Poppe suggests that breaking this level could pave the way for a substantial rally, potentially pushing Ethereum towards the $3,100 to $3,600 price range.
However, Ethereum has not yet reached the USD 2,150 resistance line as it faces a pre-existing obstacle in the form of its yearly high of USD 2,139. This crucial level has halted the cryptocurrency’s bullish momentum and has acted as a formidable resistance.
As a result, Ethereum consolidated within a narrow range between $2,050 and $2,100 over the past three days.
The coming days will reveal whether Ethereum can overcome its immediate resistance levels and build a consolidated position above. Alternatively, it could suffer a fate similar to that of Bitcoin, which failed to cross the $31,000 level for over seven months before reaching its current trading price of $36,000.
Featured image from Shutterstock, chart from TradingView.com