In an exciting turn of events for cryptocurrency enthusiasts, the Ethereum price has briefly touched the $2,700 mark.
This resurgence is particularly noteworthy given the broader market dynamics and the strong performance of Bitcoin (BTC), which is nearing its all-time high of $73,794.
As BTC rallied by over 8.5% in the past week, Ethereum’s gains have been more modest, reflecting a 5% increase during the same period, according to data from CoinMarketCap.
Ethereum (ETH) lagging as Bitcoin (BTC) nears ATH
While Bitcoin continues to shine, with prices recently approaching $73,600, Ethereum’s journey back to its all-time high of $4,878, set on November 10, 2021, requires a jump of over 45%.
After hitting a high of $2,719.88, Ethereum has slightly pulled back to around $2,692.96 at press time, highlighting a significant challenge for the cryptocurrency, which is now down over 30% against BTC in 2024.
This situation has led to Ethereum’s market dominance slipping to 13.4%, while Bitcoin maintains a commanding 58.6% of the total market cap, which currently stands at $2.43 trillion.
The contrast between these two giants becomes increasingly apparent as Bitcoin inches closer to its historical peak while Ethereum continues to grapple with its own performance.
Investors are keenly watching for signs of whether ETH can close the gap with Bitcoin or if BTC’s lead will only solidify further in this dynamic market.
Ethereum price in an ascending triangle trend
Technical analysis indicates that Ethereum is forming an ascending triangle on its daily chart, suggesting strong buying pressure.
Crypto Jaibrah, a derivatives trader on X, believe that a confirmed breakout above the $2,800 level could propel ETH to a price target of $3,500, representing a substantial 29% increase.
Historically, such formations have signalled potential bullish trends; the last occurrence led to a significant price surge from the bear market bottom on the 4-day chart.
#Ethereum is repeating history. #ETH has strong buying pressure coming in as it’s been forming an ascending triangle on the daily chart. Once we confirm a break out above $2800 the price target is $3500 a 29% price increase. The last time this happened was at the bear market…
8:46 pm · 30 Oct 2024
Jaibrah notes that the last major bullish flip on the MACD occurred in October 2022, resulting in a remarkable 160% price increase for ETH.
Stiff competition from L2 solutions
While the recent performance indicates that Ethereum is beginning to awaken, it remains to be seen whether it can regain its former dominance.
Notably, despite the positive technical indicators, Ethereum faces ongoing challenges.
Competition from its own layer-two (L2) blockchain solutions places additional pressure on ETH’s performance.
The DeFi ecosystem within Ethereum has seen growth, with increasing total value locked (TVL) as innovations continue to emerge.
However, these advancements come amid a sluggish NFT market, highlighting a complex landscape for Ethereum.
On the brighter side, Ethereum co-founder Vitalik Buterin recently introduced “The Splurge,” an ambitious series of protocol improvements intended to address various complex issues within the Ethereum network.
In his latest blog post, titled Possible Futures of the Ethereum Protocol, Part 6: The Splurge, Buterin explores the technical details of these upcoming upgrades, aimed at enhancing Ethereum’s performance, security, and scalability.
“The Splurge” targets an array of “small but crucial” aspects in the Ethereum protocol that don’t align with the categories of previous upgrades. Buterin explains that, while these elements may seem minor individually, they are “essential for Ethereum’s ongoing success” and demand a focused effort due to their complexity and critical role in the network’s evolution.
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