Despite the institutional investors favoring Bitcoin over Ethereum as shown by the US spot ETF market, the latter has outshined the former in the recent bullish breakout.
After retesting on the crucial resistance level around $2,620 last week, Ethereum ETH $1 772 24h volatility: 2.8% Market cap: $214.07 B Vol. 24h: $12.14 B price successfully broke out on Sunday to reach a range high of about $2,750. The large-cap altcoin, with a fully diluted valuation of about $329 billion and a daily average traded volume of around $17 billion, pumped nearly 4 percent in the last 24 hours to trade around $2,739 on Monday, October 21, during the early European session.
In the past 24 hours, more than $27 million was liquidated from Ether’s leveraged market, mostly involving short traders. As a result, the likelihood of an Ethereum price short squeeze in the coming days has significantly increased, which could lead to further upward volatility.
Moreover, the crypto space is expected to perform better in the coming days amid the rising speculation of a bullish October.
Additionally, the Fed is expected to initiate another rate cut in the near term, with the US 2024 general elections fast approaching, which is a recipe for a bullish crypto outlook. Already, China has initiated another interest rate cut of 25 bps, in a bid to spur economic growth.
Notably, the crypto space will eventually follow the bullish breakout observed in the precious metals market, led by Gold and Silver.
Ethereum Price Breakout Signal Altseason Ahead
For the first time in the past few months, Ethereum price has outshined Bitcoin in the bullish breakout, despite the huge difference in spot ETF cash inflows. In the past 24 hours, Bitcoin price rallied around 1 percent to tease a multi-week high of above $69K.
Already Following Our Plan But Currently Breaking Massive Bullish (Descending Broadening Wedge Pattern) In My Point Of View We Will Finally Going To See Massive Recovery In Altcoins In Coming Weeks Its Final Resistance For Now
Seems Like 300-400% Is An Easy… https://t.co/eTGqZ6vbBI pic.twitter.com/Tx8enMrqcY
— World Of Charts (@WorldOfCharts1) October 20, 2024
The notable difference in Bitcoin BTC $94 484 24h volatility: 0.4% Market cap: $1.88 T Vol. 24h: $23.01 B and Ethereum price gains over the last 24 hours has spurred a notable shift of focus to the altcoin space. Top-tier altcoins led by Solana SOL $144.7 24h volatility: 2.2% Market cap: $74.96 B Vol. 24h: $3.01 B , Shiba Inu SHIB $0.000013 24h volatility: 2.9% Market cap: $7.78 B Vol. 24h: $163.13 M , and Dogecoin DOGE $0.17 24h volatility: 3.8% Market cap: $25.58 B Vol. 24h: $966.45 M have already broken out of a macro consolidation that began in March.
With Bitcoin dominance having reached a psychological resistance level of around 59 percent, most experts believe a reversal is on the horizon, which will favor the altcoin space.
Midterm Target
According to a popular trader Peter Brandt, Ethereum price is well positioned to rally towards its all-time high in the near term after a successful bullish breakout. Brandt highlighted that Ether’s price has rebounded from a potential inverted head and shoulders (H&S) pattern, coupled with a bullish divergence in the daily Relative Strength Index (RSI).
$ETH has just broken the inverse H&S reversal price pattern.
See you at $3k short-term pattern target. https://t.co/a4Q1an8RFl pic.twitter.com/Nwy2cubppz
— Mikybull 🐂Crypto (@MikybullCrypto) October 21, 2024
Most importantly, Ethereum’s price against Bitcoin has established a potential double bottom, coupled with bullish divergence on the daily RSI. As a result, Ether’s price could soon rally above $3K, with a midterm target range of between $3.5K and $4K.
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