ethereum (eth), the second largest cryptocurrency, has seen a significant price rise over the past month. The recent bull run in the cryptocurrency market, along with BlackRock’s involvement, has taken eth to its year-to-date high of $2,139.
ethereum Outshines bitcoin and Altcoins
According According to market data provider Kaiko, eth has outperformed btc and many altcoins in recent weeks, indicating a change in market dynamics.
Kaiko’s report highlights how eth struggled to gain momentum over the past year, despite successful upgrades like The Merge in April.
However, sentiment around eth changed drastically when BlackRock filed for a spot eth exchange traded fund (ETF), leading to a reversal in the ratio of eth to bitcoin (btc).
The impact on the market was substantial, with eth prices surpassing $2,000 for the first time since April. Additionally, daily spot trading volumes reached $7 billion, the highest level since FTX collapse.
He eth ETF Narrative provided further impetus to the current rally, amplified by improving global risk sentiment and falling US Treasury yields.
Altcoin + eth volume dominance relative to btc has increased to 60%, marking its highest level in more than a year. During bull rallies, altcoin volume typically increases relative to btc.
This increase in demand has also led to an increase in leverage, as reflected by the recovery of eth open interest to early August levels. Notably, btc open interest has declined over the past month due to liquidations in binanceresulting in the Chicago Mercantile Exchange (CME) overtaking Binance as the largest btc futures exchange.
Additionally, eth funding rates, an indicator of bullish sentiment and demand, have reached their highest levels in over a year, indicating a significant shift in sentiment. In November, btc and eth‘s 30-day volatility rose to 40% and 50% respectively, following a multi-year low of around 15% during the summer months.
crypto Expert Predicts eth Breakout
Renowned crypto expert Michael Van de Poppe believe that eth is on the cusp of a significant breakthrough. According to Van de Poppe, if ethereum manages to break through the crucial resistance level of $2,150, it could mean the end of the bear market.
Drawing parallels 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 yet to touch the $2,150 resistance line as it faces a pre-existing hurdle in the form of its yearly high of $2,139. This fundamental level has halted the cryptocurrency’s bullish momentum, acting as a formidable resistance.
As a result, ethereum has been consolidating within a tight range between $2,050 and $2,100 for the past three days.
The coming days will reveal whether ethereum can overcome its immediate resistance levels and establish a consolidated position above them. Alternatively, it may face a similar fate as bitcoin, which failed to break above 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
