In a remarkable turn of events, Bitcoin (BTC) soared beyond the $71k mark today, reaching a height not seen since June. Simultaneously, Ethereum (ETH) has exhibited significant growth over the past 24 hours. The prominent altcoin, boasting a fully diluted valuation of approximately $315 billion and an average daily trading volume of around $23 billion, experienced a surge exceeding 5 percent within the same period. As of Tuesday, October 29, during the early European session, Ethereum was trading at around $2,618.
The heightened market activity led to the liquidation of nearly $40 million from Ethereum’s leveraged market, with a substantial 81 percent involving short traders. This volatility underscores the dynamic nature of the cryptocurrency landscape.
Ethereum Bulls Are Well Charged
From a technical analysis standpoint, Ethereum’s price is consolidating at the apex of a weekly triangular pattern, suggesting that a breakout may be imminent. Additionally, Ether’s price has rebounded from a critical rising logarithmic trend, which has been in place since the beginning of last year. In the short term, Ether needs to maintain a consistent close above the resistance level of around $2,829 to confirm a potential rally toward its all-time high. The Ethereum bull rally is anticipated to manifest fully once the ETH/BTC pair reverses the current downtrend, which has persisted since early 2022.
On the Flipside
Despite Ethereum’s recent gains, the network faces stiff competition from Solana (SOL) in terms of on-chain activity and growth in decentralized finance (DeFi). The increasing demand for SOL, driven by both retail and institutional investors, has strengthened the SOL/ETH pair, positioning it in the price discovery phase. Last week, Solana investment products saw cash inflows exceeding $10 million, while Ethereum experienced a negative cash flow.
Moreover, over the past two weeks, U.S. spot Ether ETFs have recorded over $25 million in cash outflows, primarily led by Grayscale’s ETHE. Despite these challenges, Ethereum remains a cornerstone in the web3 ecosystem, with more than $49 billion locked in total value (TVL) and over $84 billion in stablecoins market capitalization.
In conclusion, while Ethereum faces competitive pressures and market challenges, its underlying technology and ecosystem continue to be robust, supporting its position as a leading player in the cryptocurrency market. Investors and traders should keep a close eye on market trends and technical indicators to navigate the evolving landscape effectively.
