Ether (ETH) climbs 8 percent over 24 hours to above $3,800, sparking rumors of a wider rally. As Bitcoin (BTC) dominance plummeted, from 61.1% Nov. 20 to 54.9% today, the cryptocurrency’s rise has coincided with a sharp drop.
The fact that they happen at all is considered a key indicator of an upcoming ‘altcoin season’ in which non-Bitcoin cryptocurrencies grow rapidly. Earlier this month, when Bitcoin dominance dipped below 58 percent, trading firm QCP Capital said it could be a signal of a change in market dynamics.
Ethereum is testing this critical price level now, and analysts are setting ambitious targets. Bitcoin analyst @venturefounder notes a long-term cup and handle pattern, claiming ETH could rise to $7,346 if it keeps up the good work. Other analysts share that optimism.
Ethereum Needs To Hold $3k
If Ethereum were to retract, Ali Martinez says Ethereum needs to hold above $3k and that it may present an opportunity at that level to buy. His mid term price target is $6,000 whilst his long term project is $10,000. Martinez also pointed to growth in the amount of addresses on the Ethereum network, which has been growing by more than 134,000 new addresses per day.
Market watcher @MisterSpread says that Ethereum would rise by a “God candle” from $4,000 to $5,000 in case it breaks through the $4,000 mark. A move such as this would be a massive breakout especially for Ethereum, which has just recovered from a three year downtrend.
Firm fundamentals support ETH upward momentum. In a sign bullish ETFs aimed at ETH are gaining traction, daily interest on ETH ETFs is approaching Bitcoin ETFs. Furthermore, expected adoption and demand will be pushed by upcoming network upgrades such as ETH Improvement Proposal-7781 and lowered staking requirements.
All is not well with ETH ‘ultrasound money’ narrative, with worries that it is busting bubbles by printing too much rather than bursting them. But the doubts haven’t quelled enthusiasm; investors still believe in ETH future.
ETH performance, now trading at $3,820, is being watched closely as it tests new resistance levels. Ethereum is on the verge of an important point in its development trajectory as analysts and market participants eye possible highs of $5,000 and higher.
