Ethereum’s price has surged past the $4,000 mark this week, marking a significant milestone and exceeding its previous support levels. This surge has fueled discussions about whether it will trigger an ‘altcoin season,’ as analysts believe that ETH is playing a critical role in this potential shift. 📈
The cryptocurrency experienced a notable rally of around 21% after hitting its lowest point of the week, with $4,218 currently serving as its price tag. Experts are closely watching for whether Ethereum’s price can surpass the crucial $4,500 level, which has been identified as an important indicator in previous altcoin seasons.
Bitcoin dominance has historically served as a reliable barometer for liquidity shifts, with higher values favoring Bitcoin and lower values signaling more opportunities for altcoins. 📊 The latest data shows that BTC dominance is finally slipping below the 60% mark, a significant change for the first time in six months. This shift has propelled Ethereum dominance to an impressive 13%, indicating a potential surge in activity for ETH.
Ethereum’s recent performance highlights how its ETF flows have outpaced Bitcoin’s, further fueling speculation about an altcoin season. The ETH ETF experienced positive net flow of $174.3 million since August, while Bitcoin’s saw negative net flow of $559.1 million during the same period. This dynamic suggests a growing preference for Ethereum among institutions.
But the story doesn’t end there. Short liquidations have also surged on Ethereum, exceeding $202 million as prices touched new highs. 🚨 This surge is reminiscent of a similar situation in July, triggering another short squeeze and pushing the price upwards. Ethereum currently stands at an impressive distance from its previous all-time high.
However, the bullish trend might not last forever. While the recent rally suggests continued momentum, some analysts are looking out for a possible pullback, particularly given the bearish divergence pattern in Ethereum’s RSI. 📉 The future of Ethereum remains intriguing as it navigates this complex landscape of potential gains and risks.
For more insights into the future direction of Ethereum and its impact on the broader cryptocurrency market, follow reputable sources such as Coin Republic and expert analyses.