Bitcoin (BTC) made a major push at the beginning of the week, surpassing $123,000 and breaking a new record. While this rise had limited impact on altcoins, Ethereum (ETH) and other altcoins began to surge as profit-taking began in BTC.
Ethereum Goes on the Attack!
At this point, Ethereum reclaimed the $3,000 level for the first time since February 1st and reached a 5-month high of $3,150.
Analytics firm Swissblock said that one of the key drivers behind Ethereum’s rise is the capital rotation from Bitcoin.
Analysts noted that Bitcoin’s previous four bullish waves this year lasted between 15 and 30 days. They noted that the current rally has reached its 12th day, and that profit-taking may begin in BTC after that. They also noted that capital flowing out of BTC could flow into altcoins, particularly ETH, which could further boost ETH.
Analysts also noted that the ETH/BTC ratio broke upwards for the first time since May, signaling a trend reversal. They noted that ETH/BTC had broken above its 200-day moving average for the first time in a year, indicating medium- to long-term upward momentum for ETH.
Bullish Predictions for Ethereum Are Increasing!
Pseudonymous crypto analyst Merlijn The Trader also argued that Ethereum could experience an unprecedented rally. Accordingly, the analyst claimed that ETH could follow a trajectory similar to Bitcoin’s 2018-2021 market cycle.
If Ethereum follows BTC’s 2018-2021 cycle, it could experience a 1,100% rally.
He noted that ETH’s current price movements mirror those of BTC between 2028 and 2021, particularly the rates of increase and correction being identical. According to the analyst, ETH could experience the same 1,100% increase as BTC from now on.
This means Ethereum could potentially rally to around $18,205.
While the analyst’s chart suggests a significant rally is imminent for Ethereum, it alone isn’t enough to trigger a surge. Don’t base your investment decisions on a single piece of data or analysis. These analyses are often fallible and are merely helpful data that has never been proven 100% accurate.
*This is not investment advice.
