Ethereum is gearing up for a likely leap. According to Trader Tardigrade, Ethereum’s price action at $4,000 is similar to what was witnessed at $2,000.
ETH did struggle after a very convincing false breakout but has been standing since and might fight its way through resistance above $4,000. Tardigrade thinks the moment has indeed arrived – Ethereum should break higher.
Another market expert points to some important technical developments: the golden cross of Ethereum’s 50-day and 200-day moving averages is happening.
This is an extremely rare event. It was last seen during Ethereum’s consolidation phase during the 2021 bear market, but ETH surged 129% even then. The same pattern triggered a gigantic 2,323% rise in the 2021 bull market.
He thinks the breakout of Ethereum from a triangle consolidation is pretty important, and the weekly close will confirm the strong move. His Ethereum price target for May 2025 is $15,937.
Ethereum outshines Bitcoin in market performance
Ethereum has also gained momentum lately, especially after the U.S. presidential elections on Nov. 5. According to a recently published report by Bybit, Ethereum outperformed Bitcoin in both the Spot and Derivatives markets.
Ethereum drew significantly more attention after the election and the resignation of Gary Gensler. Unlike Bitcoin, it has shown no volatility, and at least in the options market, demand rose. This is reflected in the BTC-to-ETH spot price ratio, which has fallen since Gensler’s resignation, reflecting the increasing interest by traders in ETH.
The IV of ETH options has also jumped ahead of Bitcoin, further reinforcing demand for ETH options. That tends to fall in line with the historically higher volatility of ETH and cements its premium position within the options market.
The options market also reflects a much stronger bullish bias for Ethereum, with more traders positioning for price increase in the asset. While the call options look pretty good for both BTC and ETH, Ethereum’s skew is considerably stronger. This, therefore, means that traders are very optimistic about the future performance of Ethereum.
