The second-largest cryptocurrency, Ethereum (ETH), has experienced a sharp rise in price in the last month. ETH has reached its highest point of the year so far, $2,139, thanks to the current bullish surge in the cryptocurrency market and BlackRock’s engagement.
Ethereum Performs Better Than Altcoins And Bitcoin
Market data source Kaiko claims that in recent weeks, ETH has outpaced BTC and several other cryptocurrencies, indicating a change in the dynamics of the market.
According to Kaiko’s study, ETH has had difficulty gaining traction in the past year despite enhancements like The Merge that were successful in April.
Bullish Outlook: Ethereum Analyst Suggests $3,100 Price Target,Bullish Outlook: Ethereum Analyst Suggests $3,100 Price Target
But when BlackRock applied to launch a spot Ethereum exchange-traded fund (ETF), the market’s perception of ETH drastically shifted, and the ratio of ETH to Bitcoin (BTC) reversed.
For the first time since April, ETH prices broke above $2,000 as a result of the significant market effect. Furthermore, daily spot trade volumes hit $7 billion, the most since FTX’s demise.
The story around the ETH ETF gave the rally further momentum, which was reinforced by a decrease in US Treasury rates and an improvement in global risk sentiment.
At 60%, the volume of ETH and altcoins now dominates BTC, the greatest level in more than a year. In general, altcoin volume rises in relation to BTC during bull rallies.
The rebound of ETH open interest to levels seen in early August indicates that this spike in demand has also resulted in an increase in leverage. Notably, Binance’s liquidations have caused a drop in BTC open interest over the previous month, pushing the Chicago Mercantile Exchange (CME) to overtake Binance as the top BTC futures market.
In addition, there has been a noticeable change in attitude as seen by the fact that ETH funding rates, a measure of optimism and bullish demand, have risen to their highest points in more than a year. Both Bitcoin and Ethereum’s 30-day volatility increased to 40% and 50% in November, respectively, after hitting a multi-year low of about 15% in the summer.
Expert in Crypto Says ETH Will Breakout
Prominent cryptocurrency analyst Michael Van de Poppe thinks ETH is about to make a big breakthrough. Van de Poppe believes that Ethereum’s breakthrough over the critical $2,150 resistance level may signal the conclusion of the bear market.
Van de Poppe compares Ethereum’s crucial $30,000 barrier to Bitcoin’s and argues that breaking over it would trigger a significant upswing that might take the cryptocurrency closer to the $3,100–$3,600 mark.
But before Ethereum can cross the $2,150 resistance line, it must first overcome an existing barrier—its annual high of $2,139. This crucial milestone is a strong barrier that has stopped the cryptocurrency’s upward momentum.
Bullish Outlook: Ethereum Analyst Suggests $3,100 Price Target,Bullish Outlook: Ethereum Analyst Suggests $3,100 Price Target,Bullish Outlook: Ethereum Analyst Suggests $3,100 Price Target , Ethereum coin Crypto news, Ethereum coin News