In an exciting turn of events for cryptocurrency enthusiasts, Bitcoin (BTC) has once again broken past the $71k mark, a level not seen since June. This remarkable rally has set the stage for Ethereum (ETH) to follow suit, demonstrating impressive growth within the last 24 hours. Ethereum, a leading altcoin with a fully diluted valuation of approximately $315 billion and a daily trading volume averaging around $23 billion, has surged by over 5 percent recently. By Tuesday, October 29, during the early European trading session, ETH was trading at approximately $2,618.
The increase in market activity has led to heightened volatility, resulting in nearly $40 million being liquidated from Ethereum’s leveraged market. Notably, 81 percent of these liquidations involved short traders, highlighting the significant movement in the market.
Ethereum Bulls Are Well Charged
From a technical standpoint, Ethereum’s price is currently consolidating at the apex of a weekly triangular pattern, signaling a potential breakout on the horizon. This pattern suggests that a significant price movement could be imminent. Additionally, Ethereum’s price has rebounded from a critical rising logarithmic trend that originated earlier last year, reinforcing the bullish sentiment.
To sustain this upward momentum in the short term, Ethereum must consistently close above the resistance level of approximately $2,829. Such a move would validate a potential rally toward its all-time high. The Ethereum bull market will likely gain significant traction once the ETH/BTC pair reverses the current downtrend that began in early 2022.
On the Flipside
While Ethereum is making strides, it faces stiff competition from Solana (SOL) in terms of on-chain activity and DeFi growth. Solana’s increasing popularity among both retail and institutional investors has strengthened the SOL/ETH pairing, which is currently in the price discovery phase. Last week alone, Solana investment products attracted over $10 million in cash inflows, whereas Ethereum experienced a negative cash flow. Furthermore, over the past two weeks, US spot Ether ETFs have registered more than $25 million in cash outflows, led by Grayscale’s ETHE.
Despite these challenges, the Ethereum network remains a dominant force in the web3 ecosystem. It boasts a total value locked (TVL) of over $49 billion and a stablecoin market cap exceeding $84 billion. These figures underscore Ethereum’s significant presence and influence within the broader cryptocurrency landscape.
As the crypto market continues to evolve, keeping an eye on these dynamics will be crucial for investors and enthusiasts alike. Both Ethereum and Bitcoin are at pivotal points, and their movements could set the tone for the market in the coming weeks.