As a seasoned analyst with over two decades of experience in financial markets, I have witnessed numerous bull and bear cycles, but none quite like this digital revolution we are currently witnessing. The recent surge in Ethereum has caught my attention, not just because of its impressive gains, but also due to the underlying fundamentals that support its growth.
Bitcoin, represented by the symbol BTC, currently sits at approximately $97,763. Its 24-hour volatility is a modest 0.3%. With a market capitalization of $1.94 trillion and a daily trading volume of $103.89 billion, Bitcoin holders are eagerly anticipating the price reaching the $100K milestone.
Over the past three weeks, the ETH/USD exchange rate surged over 35%, causing it to break free from a downward trend that started in mid-March. This movement has sparked a strong upward push in the broader altcoin market, with Solana (SOL) and XRP leading the charge. The surge follows an increase in FOMO trades due to the bullish momentum.
Factors Favoring Further Bullish Uproar for Ethereum Price
Despite recent surge of on-chain activity observed on Solana, Ethereum’s dominance in the web3 sphere remains largely unchallenged. Institutional investors favor Ethereum for tokenizing real-life assets because of its proven security and bustling development community.
The interest in Ethereum continues to be strong, as indicated by its substantial daily average trading activity. According to data from Cryptoquant, the total value of Ethereum futures contracts open on all cryptocurrency exchanges exceeded $20 billion, marking a new record high.
In my exploration, I’ve noticed that Ethereum’s price bullish momentum has been relatively subdued compared to Bitcoin over the past few months. This seems to be largely due to the underperformance of Ether-based Spot Exchange Traded Funds (ETFs).
Since the U.S. Sec’s approval in early 2022, Grayscale’s ETHE has consistently experienced a drain, and this trend continued with a net cash outflow of approximately $27 million on Thursday alone. As a result, the ETHE has now accumulated losses amounting to over $3.3 billion.
Over the past while, I’ve noticed a steady rise in the amount of Ether held on centralized exchanges. This trend, unfortunately, seems to be dampening the overall bullish sentiment among crypto investors.
Midterm Target
Over the last three years, Bitcoin has outperformed Ethereum as more traditional financial markets enter the web3 sector. The ETH/BTC exchange rate has been rapidly decreasing since May this year, which has contributed significantly to Bitcoin’s current price surge and its new record high of over $99k.
Meanwhile, there’s a significant change unfolding subtly, and it’s highly likely that the ETH/BTC ratio will make a strong comeback in the short term. Additionally, the dominance of Bitcoin on a weekly scale has been shaping up as a reversal trend, accompanied by a bearish discrepancy in the Relative Strength Index (RSI).
A massive bullish divergence starts to wake up on $ETH.
It’s a great sign.
— Michaël van de Poppe (@CryptoMichNL) November 22, 2024
If Ethereum’s price finishes this week above $3,400, it would strongly suggest a positive outlook for November, and Ether could be poised for an upward surge towards $4,000. This bullish momentum might pave the way for further increases, potentially leading to a new trend and possible price discovery in early 2025.
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2024-11-22 17:09