In recent cryptocurrency news, Ethereum (ETH) has been outperforming Bitcoin (BTC), retaking the $3,000 mark for the first time since February 1. This shift in market dynamics hints at a possible mega rally for ETH, potentially leading to an enormous 1,100% increase.
While BTC experienced a dip down to $116,500 this week, ETH saw daily gains and hit a new weekly high of $3,090. This price momentum for ETH is speculated to be driven by capital rotation from Bitcoin, as noted by Swissblock, an analytics firm. Bitcoin’s previous four bullish phases lasted from 15 to 30 days, and with the current rally hitting day 12, there could be a move towards profit-taking in Bitcoin, thereby channeling more capital to altcoins like ETH.
ETH’s strength is also evident in the ETH/BTC pair dynamics. For the first time since May 24, the one-day ETH/BTC chart revealed a bullish structure break that signals a trend reversal. More importantly, ETH/BTC has managed to stay above its 200-day moving average for the first time in a year, indicating medium to long-term strength.
Ted Pillows, an ETH advocate, highlighted that the relative strength index (RSI) for the ETH/BTC weekly chart has finally broken a three-year downtrend. The presence of an upcoming golden cross further strengthens the case for a significant trend shift.
With Bitcoin’s dominance decreasing, these combined signals point to a promising altseason where Ether could potentially outpace Bitcoin in the weeks to come.
A fractal analysis by crypto analyst Merlijn The Trader suggests that ETH could follow a path similar to Bitcoin’s 2018–2021 market cycle. This could turn the rally from April’s $1,550 low into a 1,110% “vertical phase,” potentially driving ETH up to approximately $18,205.
However, it’s crucial to remember that while intriguing, fractal analysis is speculative in nature and lacks empirical, peer-reviewed validation. Its interpretive nature also makes it challenging to predict exact outcomes. Yet despite these limitations, bullish ETH supporters continue to remain hopeful.
From a technical perspective, analyst Daan Crypto suggests the immediate target for ETH lies at $4,000 after moving into the upper half of an 18-month cycle range. The trader mentioned, “ETH has moved into the upper half of its massive cycle range. $2.8K & $4K are the only levels you’ll need on the higher timeframe.”
As always, every investment and trading move involves risk, and readers should do their own research before making a decision.
