Key Points
- Ethereum (ETH) price is showing a significant bullish divergence despite low demand from whale investors.
- The Ethereum ecosystem remains a favorite among institutional investors despite recent low bullish momentum.
As Bitcoin (BTC) holders get ready to celebrate the $100K milestone, Ethereum (ETH) price is facing a key 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, indicating a potential rise soon.
Ethereum’s Bullish Momentum
After a more than 35% increase in the last three weeks, the ETH/USD pair recently broke out of a falling channel, which started in mid-March this year.
This breakout has led to significant bullish momentum in the wider altcoin market, led by Solana (SOL) and XRP, with a notable increase in FOMO trades.
Despite recent on-chain activity registered by Solana, the Ethereum network remains a favorite among institutional investors seeking to tokenize real-world assets due to its tested security and vibrant developments.
High Demand for Ethereum
The demand for Ethereum remains high as evidenced by its notable daily average trading volume.
Cryptoquant, an onchain analytics provider, revealed that Ethereum futures open interest across all crypto exchanges crossed the $20 billion level, setting a new all-time high.
However, Ethereum price has experienced 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 decline since the approval by the US SEC earlier this year.
After a net cash outflow of about $27 million on Thursday, the ETHE has now lost over $3.3 billion.
As a result, the overall Ether supply on centralized exchanges has been increasing recently, thus impacting bullish sentiment.
Midterm Outlook
For the past three years, Ethereum has been losing to Bitcoin as traditional capital markets join the web3 space.
The ETH/BTC pair has been dropping rapidly 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 expected 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).
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, setting the stage for a new trend to price discovery, potentially in early 2025.
