Ethereum (ETH) has surged 21% in the past week, outperforming Bitcoin’s 0.6% rise. The gains come as Bitcoin market dominance falls, signaling the start of an altcoin season. Investors are switching funds, expecting ETH to reach an all-time high of $4,800.
Bitcoin’s market share in the $4 trillion crypto market has retreated to 61%, the lowest it has seen since March. The decline is an indicator of gentler gains from BTC, while altcoins are on the rise. With altcoins narrowing the gap, investor interest is shifting away from Bitcoin dominance.
Historically, Ethereum performs well when Bitcoin dominance is down. Last week’s 21% growth is a testament to this phenomenon. While Bitcoin stalls, Ethereum rises on the back of broader interest inflow. These are reasons for an optimistic Ethereum trend short term.
Ethereum ETF inflows fuel price rally
Ethereum recently peaked at $3,671, marking a 152% rally since March lows of $1,392. July alone delivered a 37% monthly gain. Strong inflows into ETH spot ETFs, the one-day volume last reached $720 million, have fueled such tremendous advances in prices.
ETH is well above all-important moving averages and closing in on the critical resistance zone of $4,000 to $4,200. Institutional demand by BlackRock, Fidelity, and Grayscale is also growing, positioning Ethereum above Bitcoin in the ETF investment category. CryptoCaesar mentioned that ETH is one breakout away from a potentially life-changing rally.
Technical indicators show ETH is nearing a breakout. An uptrend channel pattern draws $4,100 if momentum is sustained. The RSI at 78.54 signals strength, although it’s nearing overbought territory. Still, ETF-driven demand may keep the rally alive beyond short-term corrections.
Key resistance holds Ethereum below ATH
Ether has key resistance between $3,600-$3,900. Since Ethereum’s inception, it has halted the action here for precisely three years. A breakthrough above here may confirm the start of a strong uptrend. Both retail demand and institutions are building the momentum for such a breakthrough.
BlackRock investors currently buy more ETH than BTC, providing a bullish catalyst. The purchasing pressure could see Ethereum cross above resistance to $4,800. RSI is still below extreme measures, so more gains are to occur before the eventual large pullback occurs.
