The price of Ethereum has recovered from the momentum, climbing above the level of $ 3,400 for the first time since mid-January, according to Cryptoslate data.
The asset has displayed a solid rally of 9% in the last 24 hours, marking a significant recovery after months of underperformance compared to bitcoin.
ETH surpasses bitcoin
Dean Chen, analyst at Bitunix, noted that the recent ETH rally is undergoing a steep slowdown in April when pricing shocks triggered a widespread panic.
Since then, Ethereum has climbed more than 150%, far exceeding the gain of 65% Bitcoin over the same period. This divergence suggests an appetite for increasing risk among traders who look beyond the BTC for more substantial yields.
As a result, altcoins at all levels benefit from this change. Cryptoslate The data show that Solana, XRP, Cardano and Dogecoin displayed more than 5% gains during the last day.
The veteran merchant Peter Brandt described this official start of “the Altcoin season”.
This point of view is supported by the Blockchain Coiginglass analysis company, whose Altcoin season index has reached 39 this week, its highest reading since February.
At the same time, total market capitalization for Altcoins experienced a notable increase, pointing to a renewal of the interests of investors outside Bitcoin.
What stimulates Ethereum’s price rally?
Chen said that the rise of Ethereum is linked to fundamental factors and not just market speculation.
In addition, the change in performance of the ETH market reflects a broader change in feeling towards the network itself. Ethereum is increasingly considered to be the fundamental layer of innovations such as stablecoins and the tokenization of assets, which has aroused increasing interest on the part of institutional investors.
Ryan Adams, the co-founder of Bankless, said:
“We are finally talking about ETH the asset and slowly start to value it as it should be valued. As a global reserve ratio. Eth is like gold or bitcoin with yield. ”
This is highlighted by increasing entrances to ETFE ETHEREUM ETHERE classified by the United States. On July 16, the nine funds recorded more than $ 726 million in fresh capital, reflecting a clear sign of trust in growing investors.
At the same time, Ethereum is gaining ground as a treasuryctive, with companies like Sharplink Gaming and Bitmin Immersion Technology recently adding ETH to their balance sheets. These companies have accumulated more than $ 1.6 billion in ETH in the last month.
What is the next step for the price of ETH?
Thomas Lee, president of Bitmin and Cio de Fundstrat, noted that Ethereum tends to follow the same trajectory as small capitalization actions. This suggests that increasing reduction in risk appetite and the potential Fed later this year could further support the price of the ETH.
In prediction markets like Polymarket, 70% of traders expect ETH to reach $ 4,000 before the end of the year, and 40% think it could reach $ 5,000. This is aligned with consensys forecasts, which projects an end -of -year price of $ 4,900 and a long -term target of $ 15,800 by 2028.
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