Key Points
- Ethereum’s price remains in a consolidation pattern, with a bullish breakout anticipated soon.
- Despite competition from other layer-one blockchains, Ethereum remains the most popular altcoin.
The price of Bitcoin recently surged by over 5%, nearly reaching its all-time high.
Meanwhile, the price of Ethereum continues to fluctuate within a consolidation pattern, still 45% below its all-time high.
Despite fierce competition from other layer-one blockchains, Ethereum, with a fully diluted valuation exceeding $322 billion and a daily average traded volume of over $22 billion, remains the leading altcoin.
Technical Analysis of Ethereum
From a technical standpoint, Ethereum’s price has already bounced off a significant rising trend that started in mid-2022.
Consequently, to confirm the expected rally towards the all-time high, Ethereum’s price needs to consistently close above the liquidity range between $2,775 and $2,825.
The daily Relative Strength Index (RSI) is showing a bullish divergence amid a potential head and shoulders (H&S) pattern.
Furthermore, the ETH/BTC pair has hit a crucial support trend line after being stuck in a bearish market for the past three years.
With Bitcoin dominance anticipated to reverse soon, after reaching a psychological resistance level of around 60%, the much-awaited alt season is expected to begin in the coming months, possibly peaking in early 2025.
Imminent Breakout for Ethereum Price
Despite Ethereum’s price lagging behind Bitcoin’s performance in recent days, a bullish breakout is expected to occur shortly.
Furthermore, the Ethereum network continues to dominate the Web3 space, with a total value locked (TVL) of over $50 billion and a stablecoins market cap surpassing $83 billion.
However, Ethereum faces stiff competition from emerging layer one blockchains such as Solana, Tron, and BSC, among others.
Most of these Web3-focused blockchains have ventured into the meme coin space to enhance their on-chain activities.
For example, despite having a TVL of only about $6.3 billion and a stablecoins market cap of around $3.7 billion, the Solana network has 20 times more active daily addresses than Ethereum.
Nevertheless, Ethereum’s co-founder remains optimistic about the network’s future growth and prospects, particularly with the mainstream adoption of digital assets and Web3 protocols.
BlackRock’s ETHA continues to lead other spot Ether ETF issuers in cash inflows, registering a net cash inflow of nearly $14 million on Tuesday and currently holding $1.18 billion in assets under management (AUM).
In the short term, Ethereum’s price is expected to experience increased volatility ahead of the U.S. 2024 elections and the anticipated Fed rate cut.
Moreover, Ethereum’s price has successfully retested the macro bullish breakout from the 2022/2023 bear market.
