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Ethereum (ETH) appears to be finally waking up from its slumber as the second-largest cryptocurrency by market cap has jumped 8% in the past 24 hours, surpassing the key $3,800 price level.
Is An ETH God Candle On The Horizon?
Ethereum’s rise appears to align with declining Bitcoin (BTC) dominance. This important metric is tracked to gauge the proportion of the total crypto market cap commanded by the top cryptocurrency.
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According to the chart below, BTC dominance has been falling dramatically over the past two weeks – sliding from 61.1% on November 20 to 54.9% at the time of writing. As previously reported, trading firm QCP Capital highlighted BTC dominance sliding below 58% as a key condition that could signal the onset of the altcoin season.
With ETH now surpassing the $3,800 level, analysts are weighing in on how far the digital asset can rally. Crypto analyst @venturefounder shared his target for ETH on X, pointing to a prolonged cup-and-handle pattern forming for ETH since November 2021. He noted that if ETH decisively breaks $3,800, it could climb as high as $7,346.
Similarly, crypto analyst Ali Martinez shared his insights on ETH’s recent price action. Martinez emphasized that the $3,300 support level could be a ‘potential buying opportunity’ should the digital asset pullback from its recent surge.
Martinez added that his mid-term target for ETH remains $6,000, while the long-term target is $10,000. The analyst also highlighted the Ethereum network’s steady growth over the past month, with more than 134,000 new Ethereum addresses added daily.
Another crypto enthusiast, @MisterSpread noted that if ETH breaks the $4,000 area, there is a “high chance we see a God candle to $5,000.” Indeed, ETH breaking out of a three-year long downtrend and attempting to establish a new all-time high (ATH) has piqued the attention of the entire crypto industry.
Ethereum Fundamentals Continue Getting Stronger
Although BTC has led much of the current crypto rally, experts believe Ethereum might be the time to shine due to the multiple positive developments in the top smart contract platform. For instance, Ethereum exchange-traded funds (ETF) are finally attracting large daily inflows, rivaling BTC ETFs consistently.
Further, several proposed network upgrades – including the Ethereum Improvement Proposal-7781 and the possibility of reduction in the amount of ETH required to participate in network staking could serve as catalysts for ETH to hit a new ATH.
That said, concerns remain about ETH’s ‘ultrasound money’ narrative due to the inflation surge witnessed in the cryptocurrency’s issuance rate. ETH trades at $3,820 at press time, up 8 % in the past 24 hours.
Featured image from Unsplash, Charts from X.com and Tradingview.com
