Ethereum Reaches Five-Month High: Will the Rally Continue for ETH?
Ethereum (ETH) has showcased volatile price movements in the cryptocurrency market this week, reaching $3,687, the highest level in the last five months.
The all-time high for Ethereum stands at approximately $4,890. With current prices, Ethereum needs to rise an additional 26% to surpass this level. The main challenge here is that Ethereum has not tested the $4,000 resistance since March. Some market commentators believe that if Ethereum can surpass the psychological level of $4,000, it could gain momentum towards a new all-time high.
Ethereum continues to face intense competition among blockchain protocols, particularly with innovations offered by Solana and layer-2 scaling solutions. Vitalik Buterin, one of Ethereum's founders, recently outlined plans for scaling the protocol. These plans include developments such as The Surge, The Scourge, The Verge, and The Purge, supported by The Merge. The aim is to facilitate the hosting of Ethereum validation nodes on mobile devices and lower the requirements for becoming a validator. Expectations are that these changes will contribute to Ethereum's long-term growth.
Could capital flow from Bitcoin to altcoins accelerate? According to analysts at QCP Capital, capital is beginning to flow out of Bitcoin and into altcoins. In the past 24 hours, Ethereum, Cardano, and Solana recorded increases of 5%, 9%, and 4%, respectively. In contrast, Bitcoin's increase remained modest at 1.5%. This shift in market sentiment is highlighted by a 13% jump in the ETH/BTC ratio. QCP Capital analysts commented, “Following Bitcoin's decline, Ethereum is making a comeback, and there are signs that market flows are shifting towards ETH and altcoins.”
Interest in Ethereum and the altcoin market is increasing. Market indicators reflect a growing interest from investors in Ethereum, with significant growth recorded, particularly in the decentralized finance (DeFi) sector. Last week, the total value locked in the Ethereum network within the DeFi market increased by 7%, reaching $66.43 billion.
Meanwhile, the overall cryptocurrency market is also being influenced by traditional financial developments. Notably, the rally in U.S. markets following Donald Trump’s nomination of Scott Bessent as Treasury Secretary has been observed to boost investor sentiment.
The global cryptocurrency market cap currently stands at $3.31 trillion, having increased by 2.64% in the last 24 hours. Bitcoin dominance is at 57%, while Ethereum dominance is at 13.2%. Although the cryptocurrency fear and risk appetite index has slightly decreased to 84 since last week, the market continues to remain in the excessive risk appetite zone.