Key Points
- Ethereum (ETH) shows signs of rallying to a new all-time high above $5,000, driven by increased institutional demand.
- The altcoin market, particularly Ethereum and Dogecoin, is experiencing significant bullish momentum.
The altcoin market, primarily Ethereum and Dogecoin, is witnessing a considerable bullish momentum after Bitcoin’s recent price surge. Ethereum’s price has increased by over 8% in the last 24 hours, trading around $3,405 on November 12 during the mid-London session.
This large-cap altcoin, with a fully diluted valuation of approximately $410 billion and an average daily traded volume of about $70 billion, has successfully bounced back from the lower border of a rising trend that started last year.
Ethereum’s Bullish Indicators
For the first time since March this year, Ethereum’s daily Relative Strength Index (RSI) has exceeded the 70 percent level, indicating a resurgence of bullish sentiments. Additionally, Ether’s price has successfully regained the 200-day Moving Average (MA) as a support level after rebounding from the 50 MA.
If the Ethereum bulls maintain their momentum, Ether’s price is likely to reach its all-time high before the end of this year. The rotation of crypto cash is favoring large-cap altcoins, leading investors to speculate about an impending altseason.
Factors Fueling Ethereum’s Rise
The demand for Ethereum to run the largest Web3 ecosystem, comprising over $61 billion in total value locked (TVL) and more than $91 billion in the stablecoins market, has significantly increased amid the ongoing bullish crypto outlook. Institutional investors are betting on an inevitable Ether price breakout after being in a bearish consolidation for the past eight months.
According to recent market data, the US spot Ether ETF issuers, led by BlackRock’s ETHA, registered a daily total net inflow of about $295 million on Monday, the highest recorded since its historic approval earlier this year. In the past four days, the US spot Ether ETF issuers have reported a net cash inflow of about $500 million, indicating a rising demand.
In the past few days, more than $200 million has been liquidated from the ETH leveraged market due to increased Ether volatility. Notably, most short ETH traders have been liquidated in the past two days, intensifying the ongoing crypto short squeeze.
The Ethereum market is responding to the ongoing market shift in major jurisdictions, which will eventually increase overall crypto liquidity. For example, the US Federal Reserve and the Bank of England initiated their respective rate cuts last week to improve their economic outlook.
Moreover, the Chinese government is expected to inject up to $1.4 trillion in the near term to bolster its economic outlook amid the ongoing de-dollarization.
