Key Points
- Ethereum’s price is predicted to reach $6K in the coming months due to a potential bullish breakout.
- Bitcoin’s rising dominance in the crypto market could lead to a bullish rebound for altcoins in early 2025.
After Bitcoin’s price fell below $70k due to strong resistance around its all-time high, Ethereum’s price maintained a short-term bearish outlook.
Ethereum, a leading altcoin with a market cap of over $296 billion and a daily average traded volume of around $14.5 billion, ended last week with an inverted hammer.
Ethereum’s Potential Bull Run
Ethereum’s price retested a crucial support level above $2,400, which could be the foundation for the next major bull run. According to crypto analyst Ali Martinez, Ethereum’s price is poised to rally towards a new all-time high (ATH), with a target of about $6K in the coming months.
Martinez points out that Ethereum’s price has been on a rising trend since early 2023. From a technical analysis standpoint, Ethereum’s price has respected a rising logarithmic trend, suggesting a possible bullish breakout.
Ethereum’s price has been consolidating in a symmetrical triangular pattern, which often results in a bullish breakout, since the crypto crash on August 5. If Ethereum consistently closes below the support range between $2,150 and $2,293, the bullish narrative for Ethereum’s price will be invalidated.
The Anticipated Altseason
In recent years, the Ethereum market has continued to lose ground to Bitcoin, as evidenced by Bitcoin’s increasing dominance. Latest market data shows Bitcoin’s dominance in the crypto market has risen to about 60 percent while Ethereum’s has dropped to about 13.19 percent.
As a result, the ETH/BTC pair has been in a multi-year falling trend, despite the weekly Relative Strength Index (RSI) being in the oversold area. Crypto analyst Benjamin Cowen suggests that another altcoin correction is likely in the coming weeks before a bullish rebound in early 2025.
Cowen predicts that the Bitcoin market will continue to outperform the altcoin space in the short term before a reversal in the first half of 2025. He has set a target range of between $1,000 and $1,400 for Ethereum in November and December before a spike beyond $6K in 2025.
Market Overview
Demand for Ethereum and most altcoins remains relatively low due to short-term market uncertainties. Last week, US spot Ether ETF issuers reported a net cash inflow of around $13 million, while Bitcoin’s ETFs registered over $2.2 billion in the past seven days.
The Ethereum ecosystem has faced stiff competition from other layer-one networks, led by Solana. Despite this, the Ethereum network remains the undisputed leader in web3, with over $45 billion in total value locked (TVL) and around $84 billion in stablecoins market cap.
