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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- Oct 29, 2024 06:57 UTC
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Why Ethereum Price is Surging Today: Technical Analysis, Market Trends, & More!
Ethereum price surged over 5% in the last 24 hours, reaching $2,618, driven by Bitcoin's rally and technical indicators.
However, Ethereum faces competition from Solana, which has attracted significant investor interest and capital inflows.
Ethereum's long-term bullish outlook depends on a reversal of the ETH/BTC pair and sustained price action above key resistance levels.
As Bitcoin (BTC) shot past $71,000 today for the first time since June, Ethereum (ETH) also experienced strong gains. The second-largest cryptocurrency by market cap saw its price rise 5% in 24 hours, reaching about $2,618 in early European trading on Tuesday, October 29. With a market valuation near $315 billion and an average daily trading volume of around $23 billion, Ethereumโs recent rally has become a point of focus in the market.
It’s safe to say that currently, all eyes are on Ethereum. What does the future hold for the second-largest crypto? Let’s dive deeper.
Is an ETH Breakout Coming?
Ethereumโs price spike brought a wave of volatility, triggering nearly $40 million in liquidations in its leveraged market, with 81% of these affecting short traders. This sudden market shakeup highlights the risk for traders betting against ETH’s rally, as many were caught off guard by the swift price jump.
From a technical analysis perspective, Ethereum’s price is consolidating near the peak of a weekly triangle pattern, indicating that a breakout could be on the way. ETH has also rebounded from a key rising logarithmic trendline established last year, reinforcing its long-term bullish outlook.
In the short term, Ethereum needs to hold above a resistance level around $2,829 to confirm a rally toward its previous all-time high. For a stronger bull run to materialize, the ETH/BTC pairโwhich has been declining since early 2022โwould need to reverse its downward trend.
Will Solana Pose a Challenge?
As Coinpedia previously noted, the Ethereum network has faced intense competition from Solana (SOL) in terms of on-chain activity and DeFi growth. High demand for Solana among both retail and institutional investors has strengthened the SOL/ETH pair, which has now entered price discovery mode.
Recently, Solana-based investment products saw cash inflows of more than $10 million, while Ethereum products recorded outflows. U.S. spot Ether ETFs have seen over $25 million in withdrawals in the past two weeks, with Grayscaleโs ETHE fund leading these outflows.
Ethereum Is Irreplaceable!
Despite Solanaโs advances, Ethereum remains a cornerstone of the web3 ecosystem. The network has over $49 billion in total value locked (TVL) and a stablecoin market cap of more than $84 billion, making it a leader in decentralized finance (DeFi) and stablecoin markets. As competitors close in, Ethereumโs strong foundation keeps it a key player, even as the blockchain space evolves.
Ethereumโs next steps will depend on overcoming critical resistance levels and potentially reversing bearish trends against Bitcoin, setting up a crucial period ahead for investors.
Are you excited for what lies ahead for Ethereum?
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