Ethereum’s market performance is capturing significant attention as the cryptocurrency sees a remarkable rally.
Over the past week, Ethereum has outpaced the broader crypto market, rising 11.65% to touch $3,688, driven by inflows into spot Ethereum Exchange-Traded Funds (ETFs) and a notable shift in capital from Bitcoin. This surge has positioned Ethereum closer to reclaiming its all-time high of $4,868, last recorded in November 2021.
Ethereum’s strength is reflected in the ETH/BTC ratio, which surged by 17.8% this week, now standing at 0.03760. Analysts at QCP Capital highlighted the ratio’s resilience, noting that Ethereum has held its ground even as Bitcoin dominance in the market dipped from its peak of 61.50%.
“ETH/BTC is performing well, signaling Ethereum’s increasing strength relative to Bitcoin. With the ratio now at 0.03760, we see 0.0400 as the next key level,” QCP Capital stated.
The capital rotation is evident as Bitcoin reclaimed the critical $95,000 level on November 27, supported by in-line results from the U.S. Personal Consumption Expenditures (PCE) Price Index. Despite Bitcoin’s strong performance, Ethereum’s momentum continues to build, underscoring investor confidence in its near-term prospects.
With Ethereum’s relative strength climbing, analysts are optimistic about its potential to retest its record high of $4,868. This represents an upside of 35.4% from current levels.
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The cryptocurrency’s technical indicators are also turning bullish, with the daily charts showing the possibility of a golden cross—a pattern where the 50-day Exponential Moving Average (EMA) crosses above the 200-day EMA, signaling a potential long-term upward trend.
“Ethereum is showing a robust technical setup. Combined with strong ETF inflows and growing interest in its ecosystem, the conditions are aligning for a significant price move,” analysts noted.
Beyond price action, Ethereum’s fundamentals remain solid. Its decentralized finance (DeFi) ecosystem is experiencing renewed growth. According to data from DeFiLlama, the total value locked (TVL) in Ethereum-based DeFi protocols increased by $10 billion in recent weeks.
This boost follows market optimism sparked by Donald Trump’s unexpected win in the U.S. presidential election, which has invigorated speculative interest in risk assets.
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Ethereum remains the dominant blockchain for DeFi, with a vast majority of protocols relying on its network. This activity underscores the platform’s critical role in the evolving financial landscape and reinforces its long-term value proposition.
As Ethereum continues to outperform, the road ahead looks promising. Key levels, such as $3,800 and $4,000, will be closely watched as Ethereum builds momentum. Analysts suggest that breaking these psychological barriers could set the stage for a sustained rally, potentially taking Ethereum to new highs.
With the combined forces of technical strength, ETF inflows exceeding $90 million, and a flourishing DeFi ecosystem, Ethereum is once again proving its resilience and relevance in the cryptocurrency market.
Investors are keeping a close eye on the developments, as the possibility of Ethereum reclaiming its throne as a top-performing digital asset becomes more tangible.