Several indicators point to an imminent bullish breakout for Ethereum price in the near term as Bitcoin price approaches a major psychological target of $100K.
As Bitcoin BTC $89 371 24h volatility: 0.0% Market cap: $1.78 T Vol. 24h: $24.76 B holders prepare to begin celebrating the $100K milestone, Ethereum ETH $3 047 24h volatility: 0.5% Market cap: $367.66 B Vol. 24h: $11.27 B price is facing a crucial resistance range between $3,380 and $3,427. The large-cap altcoin, with a fully diluted valuation of about $402 billion and a daily average traded volume of about $56 billion, gained around 9% on Thursday, signaling a potential upsurge soon.
Following the spike of more than 35% in the last three weeks, the ETH/USD pair recently broke out of a falling channel, which began in mid-March this year. Consequently, the general wide altcoin market, led by Solana (SOL) and XRP, has gained significant bullish momentum amid the notable increase in FOMO trades.
Factors Favoring Further Bullish Uproar for Ethereum Price
As Coinspeaker previously noted, the Ethereum ecosystem remains largely undisputed in the web3 space despite the notable on-chain activity registered by Solana in the recent past. The Ethereum network has been a favorite among institutional investors seeking to tokenize real-world assets due to its tested security and vibrant developments.
The demand for Ethereum remains high as shown by its notable daily average trading volume. Onchain analytics provider Cryptoquant revealed that Ethereum futures open interest across all crypto exchanges crossed the $20 billion level, which represents a new all-time high.
However, Ethereum price has faced low bullish momentum compared to Bitcoin in recent months led by the poor performance of the spot Ether ETFs.
Grayscale’s ETHE has continued to bleed since the approval by the US SEC earlier this year. After registering a net cash outflow of about $27 million on Thursday, the ETHE has now lost over $3.3 billion.
Consequently, the overall Ether supply on centralized exchanges has been increasing in the recent past, thus weighing down on bullish sentiment.
Midterm Target
For the past three years, Ethereum has been bleeding to Bitcoin as the traditional capital markets join the web3 space. The ETH/BTC pair has been dropping fast since May this year, thus fueling the ongoing Bitcoin price rally to a new all-time high of above $99k.
However, a shift has been brewing in the background and a major rebound of the ETH/BTC pair is inevitable in the near term. Moreover, the weekly Bitcoin dominance has been forming a reversal pattern coupled with a bearish divergence of the Relative Strength Index (RSI).
A massive bullish divergence starts to wake up on $ETH.
It's a great sign. pic.twitter.com/4agR78hKnm
— Michaël van de Poppe (@CryptoMichNL) November 22, 2024
From a technical analysis standpoint, if Ethereum price closes this week above $3,400, the chances of ending November in a bullish outlook will be extremely high. In such a scenario, Ether price will be well primed for a rally towards $4K, which will set the stage for a new trend to price discovery, potentially in early 2025.
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