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, Ethereum’s 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.
Ethereum’s 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 pair—which has been declining since early 2022—would need to reverse its downward trend.
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 Grayscale’s ETHE fund leading these outflows.
Despite Solana’s 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, Ethereum’s strong foundation keeps it a key player, even as the blockchain space evolves.
Ethereum’s 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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