Ethereum Capitulation Nearing Its End? Key On-Chain Metric Reveals Insights
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing Strict editorial policy that focuses on accuracy, relevance, and impartiality Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Este artículo también está disponible en español. According to a recent X post by seasoned crypto analyst Ali Martinez, Ethereum (ETH) may have already gone through its capitulation phase for this market cycle. Notably, the second-largest cryptocurrency by market cap is down more than 55% over the past year. Is Ethereum Capitulation Over? Unlike Bitcoin (BTC) and altcoins such as XRP, Solana (SOL), and SUI, Ethereum has endured a challenging two-year stretch. The cryptocurrency was trading at $1,892 exactly two years ago, on April 11, 2023, and is now priced around $1,560 – over 17% lower. Related Reading In contrast, BTC has surged from approximately $41,000 two years ago to $82,127 at the time of writing – an increase of nearly 100%. While SOL currently trades below its April 2023 price, unlike ETH, it did manage to reach a new all-time high (ATH) of $293 earlier this year in January. Understandably, sentiment toward ETH – among both retail and institutional investors – is hovering near all-time lows. However, Martinez believes that “smart money” may be accumulating at current levels, anticipating a near-term reversal. The analyst pointed out that Ethereum’s Entity-Adjusted Dormancy Flow has recently dropped below one million. Martinez added: This historically indicates a macro bottom zone, meaning $ETH might be undervalued and long-term holders are less inclined to sell. It also suggests: sentiment is low, capitulation may have occurred, smart money might be accumulating. Source: ali_charts on X For the uninitiated, Ethereum’s Entity-Adjusted Dormancy Flow is an on-chain metric that compares the market cap to the dormancy – the average age of ETH being moved – adjusted for unique entities instead of raw addresses. The metric helps identify whether the market is overheated or undervalued by tracking the behavior of long-term holders. If ETH follows historical trends, it may be approaching a momentum reversal. In a separate X post, crypto trader Merlijn The Trader suggested that Bitcoin Dominance (BTC.D) is nearing a peak, which could shift capital into altcoins and trigger a short-term rally. Source: Merlijn The Trader on X At the time of writing, BTC.D stands around 63.5%. A potential pivot by the US Federal Reserve toward quantitative easing (QE) could inject fresh liquidity into the market, possibly sparking a mini altcoin rally. Source: Bitcoin Dominance on TradingView.com ETH Demands Cautious Optimism While there are multiple signs that ETH may be close to bottoming out, some indicators suggest that there could be continued weakness for the digital asset before any meaningful momentum shift. Related Reading In a recent analysis, Martinez warned that ETH could fall as low as $1,200 if the current sell-off continues. Further, ongoing capital outflows from US-based spot Ethereum exchange-traded funds (ETF) remain a concern for the asset’s short-term outlook. That said, crypto analyst NotWojak recently noted that ETH may be on the verge of a breakout, with a potential upside target of $1,835. At press time, ETH is trading at $1,557, down 2.3% in the past 24 hours. ETH trades at $1,557 on the daily chart | Source: ETHUSDT on TradingView.com Featured image created with Unsplash, charts from X and TradingView.com
Bitcoin Dominance To Peak At 68% – Altcoin Season Incoming?
Amidst the ongoing consolidation in the crypto market, an analyst with X pseudonym cryptododo7 has observed certain developments with the Bitcoin dominance that could spell significant implications. Bitcoin Dominance Climbs Higher As Altcoins Prepare For Takeoff In a recent X post on March 21, cryptododo7 shared a technical analysis on the Bitcoin Dominance chart hinting at a possible altseason. The crypto analyst noted that Bitcoin Dominance may be poised for a sustained uptrend following a breakout and successful retest of a bullish pennant formation at the 61.25% level. Generally, the bullish pennant forms after a strong upward price movement as seen in early 2025 in the chart below. This price surge (known as the flagpole) is followed by a consolidation phase in which price movements make higher lows and lower highs thereby forming a symmetrical triangle i.e. the pennant. With a successful breakout and retest of the bullish pennant, Bitcoin Dominance has confirmed expectations of a major surge, with Cryptododo7 predicting a potential target of 67.51%. However, the crypto analyst cautions that this rise may not signal a market-wide rally, as Bitcoin Dominance may surge alongside a decline in Bitcoin and altcoins’ price. Albeit, the analyst further states this projected dominance top of 67.51% will potentially represent the peak of Bitcoin Dominance in this bear market, signaling a possible altseason. The altseason, which is a prominent period in the crypto market cycle, is marked by altcoins’ outperformance of Bitcoin which is confirmed by a decline in Bitcoin Dominance. Certain analysts have previously beaten down the odds of an altseason in the current cycle citing a massive increase in altcoin numbers over the last four years. However, other analysts such as Cryptododo7 remain optimistic stating an altseason will likely follow Bitcoin Dominance’s surge to 67.51%. During this period, altcoins are expected to experience massive capital inflows potentially as high as $627 billion. MACD Curl Hints At Possible Reversal – More Positives For The Altseason? In other developments, X platform MoreCryptoOnline reports the Weekly MACD (Moving Average Convergence Divergence) of the total crypto market cap (excluding the top 10 coins) is beginning to curl upwards indicating a potential bullish shift in the altcoin market. For context, the MACD is a commonly used momentum indicator that helps identify potential trend reversals. And while this signal suggests a possible shift, it remains an early-stage confirmation of the altseason. At press time, the total crypto market capitalization stands at $2.76 trillion, with Bitcoin accounting for $1.67 trillion of this value. Meanwhile, the CoinMarketCap Altseason Index sits at 21, suggesting that an altcoin boom is not yet imminent.
Ethereum Weekly RSI Drops To Lowest Level Since May 2022 – More Selling Pressure Ahead?
Este artículo también está disponible en español. Over the last week, Ethereum (ETH) has dropped 13.8%, currently trading at the critical $2,000 support level. While the digital asset’s weekly Relative Strength Index (RSI) has hit its lowest point in three years, analysts warn that further downside may still be ahead. Ethereum RSI At Lowest Levels In Years US President Donald Trump’s trade tariffs on Canada and Mexico took effect earlier today, fueling fears of an impending recession. According to the latest data from Kalshi, there is a 39% probability of a recession occurring in 2025. Related Reading The broader crypto market has also felt the pressure from these tariffs, with the total market cap declining from $3.7 trillion on December 14 to $2.8 trillion at the time of writing. Major cryptocurrencies such as Bitcoin (BTC) and ETH have been significantly impacted, down 7.1% and 8.9% in the past 24 hours, respectively. Unlike BTC, which saw a remarkable 2024 with multiple new all-time highs (ATH), ETH has struggled since reaching its peak of $4,878 in November 2021. Over the past year, ETH has declined by 41.6%, while BTC has risen by 26%. The latest crypto market pullback has added to ETH’s challenges, bringing it down to the psychologically significant $2,000 level. Crypto analyst Jesse Olson noted that intense selling pressure has pushed ETH’s weekly RSI to 35.87, its lowest reading since May 2022. Olson further explained that the bottom was not reached in May 2022, as ETH subsequently dropped another 60%. If ETH follows a similar trajectory, it could fall another 60% from $2,000, potentially reaching around $800. Source: Jesse Olson on X Fellow crypto analyst Merlijn The Trader echoed Olson’s concerns, stating that Ethereum is currently “playing the waiting game.” The analyst emphasized that ETH is approaching a crucial “make or break” level on the RSI. Analyst Urges Not To Panic Sell ETH Despite heightened macroeconomic uncertainty due to Trump’s trade tariffs, some analysts remain confident that ETH is nearing its bottom and could soon resume its uptrend. In an X post, one crypto analyst remarked: Ethereum is currently retesting the 21-Day EMA on the 3-Month chart. ETH has NEVER closed a candle beneath this level. We are either about to witness history or we are very close to bottoming. Be VERY CAREFUL Panic Selling! Related Reading There might still be hope for the second-largest cryptocurrency, as recent analysis found that ETH exchange balances have dropped to a 9-year low, strengthening the digital asset’s supply scarcity narrative. At press time, ETH trades at $2,126, down 8.9% in the past 24 hours. ETH is close to hitting a new yearly low as it trades at $2,126 on the daily chart | Source: ETHUSDT on TradingView.com Featured image from Unsplash, Charts from X and TradingView.com
Ethereum Must Hold This Key Level To Keep Altseason Hopes Alive, Analyst Explains
Este artículo también está disponible en español. In an X post published today, crypto market analyst and commentator Ali Martinez highlighted a crucial Ethereum (ETH) price level that must hold to sustain hopes for an altseason. Martinez warned that losing this support could significantly derail any potential altcoin rally. Ethereum Must Defend Key Price Level Ethereum, the second-largest digital asset by market cap, continues to trade in the mid-$2,000 range. At the time of writing, ETH is priced just below $2,700, offering bulls a glimmer of optimism for a potential breakout above the $3,000 resistance level. Related Reading However, in his latest analysis, Martinez emphasized the $2,600 level as a critical price point for ETH. He added that if the digital asset falls below this level, then “altseason will be canceled.” Source: ali_charts on X The recent Bybit crypto exchange hack sent shockwaves across the cryptocurrency industry as hackers stole digital assets worth more than $1.4 billion. Notably, ETH accounted for the bulk of the stolen funds. Despite this, ETH held up relatively well compared to Bitcoin (BTC), according to fellow crypto analyst Daan Crypto Trades. The analyst pointed out that ETH’s ability to remain at essentially the same price level after such a massive hack is “interesting.” They added: To see ETH at basically the same level as before a $1B+ hack is pretty interesting. Would not be surprised it there’s indeed some entity buying back some of that lost ETH or people frontrunning such a thing. At some point the ETH likely has to get back somehow, whether it’s recovered or bought back. Otherwise there would not be a 100% cover of funds. Crypto analyst Ted echoed this sentiment in his own analysis of the Bybit hack. In an X post, he highlighted that not only did the hack fail to push ETH to new lows, but the cryptocurrency has already rebounded 35% from its bottom. Source: Ted on X Meanwhile, crypto trader Merlijn The Trader provided some hope for ETH bulls, sharing a three-week Ethereum chart that suggests ETH is poised to break out of a symmetrical triangle pattern for its “biggest bull run yet.” Altseason In Jeopardy? Seasoned crypto analyst Rekt Capital also weighed in, sharing a daily altcoin market cap chart that shows altcoins failing to close above key resistance levels, highlighted in red circles. They explained: Altcoin Market Cap is transitioning into this triangular market structure (blue). Alts will need to daily close above the blue lower high and then above black resistance to confirm a major trend shift. Source: Rekt Capital on X Related Reading That said, there may still be hope for an impending altseason led by Ethereum. A recent report found that ETH reserves on crypto exchanges are at a nine-year low, which could exacerbate supply scarcity and drive up prices. At press time, ETH trades at $2,671, down 5.2% in the past 24 hours. ETH trades at $2,671 on the daily chart | Source: ETHUSDT on TradingView.com Featured image from Unsplash, Charts from X and TradingView.com
Altseason On The Way? Key DeFi Developments Signal Major Crypto Surge
Semilore Faleti is a cryptocurrency writer specialized in the field of journalism and content creation. While he started out writing on several subjects, Semilore soon found a knack for cracking down on the complexities and intricacies in the intriguing world of blockchains and cryptocurrency. Semilore is drawn to the efficiency of digital assets in terms of storing, and transferring value. He is a staunch advocate for the adoption of cryptocurrency as he believes it can improve the digitalization and transparency of the existing financial systems. In two years of active crypto writing, Semilore has covered multiple aspects of the digital asset space including blockchains, decentralized finance (DeFi), staking, non-fungible tokens (NFT), regulations and network upgrades among others. In his early years, Semilore honed his skills as a content writer, curating educational articles that catered to a wide audience. His pieces were particularly valuable for individuals new to the crypto space, offering insightful explanations that demystified the world of digital currencies. Semilore also curated pieces for veteran crypto users ensuring they were up to date with the latest blockchains, decentralized applications and network updates. This foundation in educational writing has continued to inform his work, ensuring that his current work remains accessible, accurate and informative. Currently at NewsBTC, Semilore is dedicated to reporting the latest news on cryptocurrency price action, on-chain developments and whale activity. He also covers the latest token analysis and price predictions by top market experts thus providing readers with potentially insightful and actionable information. Through his meticulous research and engaging writing style, Semilore strives to establish himself as a trusted source in the crypto journalism field to inform and educate his audience on the latest trends and developments in the rapidly evolving world of digital assets. Outside his work, Semilore possesses other passions like all individuals. He is a big music fan with an interest in almost every genre. He can be described as a “music nomad” always ready to listen to new artists and explore new trends. Semilore Faleti is also a strong advocate for social justice, preaching fairness, inclusivity, and equity. He actively promotes the engagement of issues centred around systemic inequalities and all forms of discrimination. He also promotes political participation by all persons at all levels. He believes active contribution to governmental systems and policies is the fastest and most effective way to bring about permanent positive change in any society. In conclusion, Semilore Faleti exemplifies the convergence of expertise, passion, and advocacy in the world of crypto journalism. He is a rare individual whose work in documenting the evolution of cryptocurrency will remain relevant for years to come. His dedication to demystifying digital assets and advocating for their adoption, combined with his commitment to social justice and political engagement, positions him as a dynamic and influential voice in the industry. Whether through his meticulous reporting at NewsBTC or his fervent promotion of fairness and equity, Semilore continues to inform, educate, and inspire his audience, striving for a more transparent and inclusive financial future.
Altcoins Ready For Round Two? CryptoQuant CEO Says Altseason Already Begun
Este artículo también está disponible en español. As the cycle progresses, many investors are awaiting the long-anticipated Altseason, with opinions split on whether it will happen. Several market watchers have affirmed that Altcoins (Alts) are getting ready for an explosive breakout, but others, including CryptoQuant’s CEO, have suggested a different outlook. Related Reading Few Cryptocurrencies To ‘Survive’ The Altseason On Friday, Ki Young Ju, CryptoQuant’s founder and CEO, affirmed that the Altseason has begun. In an X thread, Ju suggested that there will not be a direct Bitcoin-to-alt rotation this cycle, noting that “stablecoin holders are favoring” Altcoins. According to Ju, Bitcoin is no longer a quote cryptocurrency, adding that Bitcoin (BTC) Dominance doesn’t define the altseason anymore. In a December post, he explained that “Altcoins used to move together based on their correlation with BTC,” however, this pattern has now broken. Instead, he stated that trading volume is the metric that defines it, with Altcoins currently having 2.7x the volume of Bitcoin. Ju also considers this to be a very selective and challenging altseason, with only a few Altcoins with strong user cases and narratives expected to thrive. He added that, despite good market sentiment, there isn’t fresh liquidity, which “feels like a PvP fight over a fixed pie.” As a result, Altcoin battles “are getting fiercer,” and only a few are pumping this altseason and attracting new liquidity. Altcoin markets are currently a zero-sum PvP game. While Bitcoin has doubled its market cap, the alt market cap is still below its previous ATH, rotating among themselves without fresh capital inflows. Only a few Alts with strong use cases and narratives will survive. Altcoins Ready For Next Leg Up Trader Crypto Yoddha suggested that Altcoins are “ready for round 2” after its recent performance. According to the post, the crypto market, excluding BTC and ETH, is following 2020-2021’s playbook. During the last cycle, Altcoins experienced two legs towards its cycle top and all-time high (ATH) of $1.13 trillion. In the “first round,” they broke out from its accumulation period, seeing a small re-accumulation phase before surging to the previous top. Altcoins’ chart resembles the 2020-2021 rally. Source: Crypto Yoddha on X After reclaiming this resistance level, Altcoins started “round two,” achieving various new highs before hitting a new cycle top. Yoddha pointed out that the market is finishing the first round, as it tested last cycle’s top during the post-election pump. Analyst Rekt Capital affirmed that the crypto market cap, excluding the top 10 tokens, “has completed the second part of its Double Bottom formation.” He explained that Altcoins had been consolidating between the $250 billion to $280 billion range since the February 3 correction. Related Reading Per the post, Alts must close above $280 billion and retest this level as support to confirm a breakout from its three-week resistance and attempt to reclaim the $300 billion mark. Similarly, analyst Carl Runefelt stated that Altcoins have a parabolic move after breaking out of its two-month descending channel. Alts saw a 120% climb after breaking out of a 2024 multi-month descending channel. Altcoins must reclaim the $300 billion resistance to break from this pattern. Total crypto market capitalization, excluding BTC, is at $1.23 trillion. Source: TOTAL2 on TradingView Featured Image from Unsplash.com, Chart from TradingView.com
Ethereum Exchange Balances Drop To 9-Year Low – Time For A Major Price Move?
Este artículo también está disponible en español. According to recent data from CryptoQuant, Ethereum (ETH) reserves on centralized cryptocurrency exchanges have dropped to a nine-year low. Experts suggest that this dwindling ETH supply could indicate an impending ‘supply shock,’ potentially fuelling a significant rally in the cryptocurrency. Ethereum Reserves At 9-Year Low Ethereum, the second-largest cryptocurrency by market cap, continues to trade within the mid-$2,000 range, sitting at $2,721 at the time of writing. Unlike Bitcoin (BTC), ETH has had a relatively quiet 2024, struggling to break past its all-time high (ATH) of $4,878, recorded in November 2021. Related Reading This lackluster price action has contributed to waning investor confidence in ETH. However, the digital asset recently managed to defend the critical $2,380-$2,460 demand zone, rekindling bullish hopes for a potential breakout above the stubborn $3,000 resistance level. More notably, ETH reserves on centralized exchanges continue to plummet, which could lead to a supply shock – a scenario where demand for the asset surpasses its liquid supply. If this materializes, ETH may experience rapid price appreciation. For the uninitiated, a supply shock in the crypto industry occurs when the demand for the underlying digital asset exceeds its liquid supply. As a result, the underlying asset – ETH, in this case – may experience sharp price appreciation in a short time. As of today, ETH reserves on centralized crypto exchanges have fallen to 18.95 million, a level last seen in July 2016. Notably, ETH was trading at $14 at the time. Source: CryptoQuant Recent analysis from seasoned crypto analyst Crypto Buddha suggests that ETH may be on the verge of a major price move. The analyst highlights how ETH has broken through a diagonal resistance level, signalling a potential bullish breakout. Source: Crypto Buddha on X Furthermore, Bitcoin (BTC) is exhibiting similar price behavior. A successful BTC breakout could spark a broader crypto market rally, driving significant gains across various digital assets. Crypto Buddha noted: Bitcoin‘s price action is following a similar pattern with a triangular convergence, raising the question of whether it can break through successfully like Ethereum. Since the low of $91,000, Bitcoin has been consolidating for 10 days. The market is at a crucial juncture, and it’s time to pick a direction. Will ETH Investors Finally Have Their Time? Unlike competitors such as Solana (SOL), SUI, and XRP, which have all seen significant price appreciation over the past year, ETH has struggled to capitalize on bullish momentum. Bearish sentiment surrounding ETH has been on unprecedented levels. Related Reading However, analysts are confident that ETH may soon surprise the market. Recent analysis by Titan of Crypto emphasizes that ETH may soon enter its ‘most hated rally,’ leading to major price appreciation. That said, concerns about the Ethereum Foundation selling copious amounts of ETH continue to haunt the holders. At press time, ETH trades at $2,721, down 4.7% in the past 24 hours. ETH trades at $2,721 on the daily chart | Source: ETHUSDT on TradingView.com Featured image from Unsplash, charts from CryptoQuant and Tradingview.com
Bitcoin Presents A ‘Generational Opportunity’ As Global Turmoil Intensifies, Says Bitwise Executive
Este artículo también está disponible en español. In a post on X published yesterday, Jeff Park, Head of Alpha Strategies at Bitwise, stated that Bitcoin (BTC) currently presents a “generational opportunity” amid intensifying global macroeconomic turmoil. Park pointed to factors such as US President Donald Trump’s proposed trade tariffs, concerns over the US debt ceiling, and the growing sentiment of deglobalization as key contributors to the current economic uncertainty. Bitcoin Reigns Supreme Amid Global Political And Economic Turmoil The year 2025 has started on an unstable footing, marked by rising global economic and political instability due to trade tariffs, US debt ceiling issues, and the broader push toward deglobalization. These factors could significantly impact financial markets and geopolitical stability. Related Reading Adding to the uncertainty is the impending expiration of the US Tax Cuts and Jobs Act (TCJA) later this year, which could lead to unprecedented tax policy shifts and heightened economic unpredictability. Park also underscored the “gold run tail risk,” referencing gold’s extreme price volatility during periods of financial distress. At the time of writing, gold is trading at $2,900 per ounce, up significantly from around $2,585 in December 2024. Despite these mounting risks, Bitcoin has remained resilient, maintaining a price range between $90,000 and $100,000. Park highlighted BTC’s implied volatility (IV) percentile – a measure that reflects how its current volatility compares to historical levels. Source: Jeff Park on X He noted that BTC’s IV percentile is at its lowest level of the year, reinforcing his view that Bitcoin presents a “generational opportunity.” Echoing this sentiment, Bitwise CEO Hunter Horsley remarked that many are underestimating “the massive leaps Bitcoin is going to take into the mainstream this year.” Indeed, Bitcoin continues to gain mainstream traction and demonstrate resilience amid rising global economic uncertainty. For example, BTC remained largely unaffected by the tech market sell-off triggered by the release of the Chinese AI model DeepSeek. No Altseason Anytime Soon? As Bitcoin strengthens its dominance, the altcoin market has struggled, weighed down by thin liquidity and waning retail interest. One key indicator supporting this trend is Bitcoin dominance (BTC.D), which measures BTC’s market cap relative to the total cryptocurrency market. Related Reading The weekly BTC.D chart shows a strong rebound from around 54% in December 2024. At the time of writing, BTC.D stands at 60.65%, a level not seen since March 2021. Source: BTC.D on TradingView.com That said, some analysts remain optimistic about a potential Ethereum-led (ETH) altseason later in 2025. Recent analysis by Titan of Crypto suggests that Ethereum is poised for a major upward move this year. The analyst also pointed out similarities between ETH’s current price action and BTC’s behavior during its third market cycle, implying that Ethereum may soon enter what he calls its “most hated rally.” At press time, BTC trades at $95,362, down 0.4% in the past 24 hours. BTC trades at $95,362 on the daily chart | Source: BTCUSDT on TradingView.com Featured image from Unsplash, Charts from X.com and Tradingview.com
Is Ethereum ‘Most Hated Rally’ About To Begin? Analyst Finds Bitcoin Cycle Similarities
Este artículo también está disponible en español. After a relatively subdued price performance in 2024, Ethereum (ETH) could be on the verge of a significant breakout. A recent analysis by a well-known crypto analyst suggests that the second-largest digital asset may soon enter what they call its “most hated rally.” Is It Finally Ethereum’s Time To Shine? Since reaching its all-time high (ATH) of $4,878 in November 2021, Ethereum has struggled to regain momentum, while other cryptocurrencies such as Solana (SOL), SUI, and XRP have delivered substantial returns to investors. Related Reading Currently, ETH is trading at $2,649 – only 5.5% higher than its price exactly one year ago. In stark contrast, XRP has surged an astonishing 365% during the same period. Even Bitcoin (BTC), despite its much larger market cap, has recorded a 100% gain in the past year. As a result, investor confidence in ETH appears to be dwindling. Recent on-chain analysis indicates that ETH ‘whales’ – wallets with significant ETH holdings – have been offloading, even at a loss. However, this trend could change dramatically. According to crypto analyst Titan of Crypto, Ethereum’s “most hated rally” could be just around the corner. The analyst draws parallels between Ethereum’s current price action and Bitcoin’s behaviour during its third market cycle between 2018 and 2020. The weekly chart below illustrates the striking similarities between the two assets. Source: Titan of Crypto on X According to the analysis, Ethereum is currently in what is known as the “manipulation phase.” If history repeats itself, ETH is likely to enter the “run-up phase” once it decisively breaks through the “re-accumulation phase.” Notably, the chart also highlights that ETH has faced rejection at a crucial resistance level around $4,000 exactly three times – mirroring Bitcoin’s behaviour during its third market cycle before eventually breaking out. Similarly, another crypto analyst, Ted, has compared Ethereum’s price chart to that of XRP. He notes that XRP remained in a consolidation phase for nearly three years, experiencing little to no price movement, only to surge by 250% within just five weeks. Source: Ted on X Bullish Signs For Ethereum Despite hedge funds holding a large short position on ETH due to its recent subpar price performance, analysts are optimistic that 2025 will bring joy to the ETH bulls. Related Reading For instance, recent analysis by crypto analyst Kiu_Coin suggests that ETH is on the cusp of an explosive price rally that may send it to $17,000. Another report published in January 2025 projects ETH price to climb to $8,000, outperforming BTC. Another sign of growing confidence in Ethereum is the increasing capital inflow into Ethereum exchange-traded funds (ETFs), outpacing Bitcoin ETFs in recent weeks. This trend indicates renewed optimism and a possible capital rotation into ETH. At press time, ETH trades at $2,649, down 1.1% in the past 24 hours. ETH trades at $2,649 on the daily chart | Source: ETHUSDT on TradingView.com Featured image from Unsplash, charts from X and Tradingview.com Source link
Ethereum Short Positions Surge 500% In 3 Months – What’s Behind The Bearish Sentiment?
Este artículo también está disponible en español. Ethereum (ETH), the second-largest cryptocurrency by reported market cap, is facing unprecedented short selling from hedge funds. Notably, short positions in ETH have soared by 500% since November 2024, indicating heightened bearish sentiment toward the digital asset. Institutional Investors Losing Faith In Ethereum? According to a recent post on X by The Kobeissi Letter, Ethereum price is witnessing mounting challenges as short positioning in the cryptocurrency has ballooned in recent times. Notably, ETH short positions are up 40% in the last week, while they are up 500% in the last three months. Source: Zerohedge It is worth highlighting that this is the highest level ever that Wall Street funds have been short Ethereum. Earlier this month, the crypto market got an indication of this bearish ETH positioning, as the digital asset crashed 37% in 60 hours amid Donald Trump’s proposed trade tariffs on Canada, China, and Mexico. Related Reading Interestingly, capital inflows to Ethereum exchange-traded funds (ETF) were significantly high in December 2024. In just 3 weeks, ETH ETFs attracted more than $2 billion in new funds, with a record breaking weekly inflow of $854 million. However, hedge funds’ positioning on ETH suggests that they are not very confident in the cryptocurrency’s short-term price outlook. Several factors could be at play for institutional investor’s waning interest in ETH. For instance, ETH is currently trading almost 45% below its current all-time high (ATH) of $4,878 recorded way back in November 2021. In contrast, Bitcoin (BTC) has had a stellar 2024, hitting multiple new ATH, and commanding a market cap that is almost six times larger than that of ETH. The Kobeissi Letter attributes ETH’s current lacklustre price performance to potential “market manipulation, harmless crypto hedges, to bearish outlook on Ethereum itself.” However, the market commentator indicates that this excessive bearish outlook may set ETH up for a short squeeze. They add: This extreme positioning means big swings like the one on February 3rd will be more common. Since the start of 2024, Bitcoin is up ~12 TIMES as much as Ethereum. Is a short squeeze set to close this gap? ETH Short Squeeze To Initiate Altseason? A short squeeze on ETH could teleport its price to as high as $3,000, or even $4,000. However, according to seasoned crypto analyst Ali Martinez, ETH must defend the $2,600 support level to climb higher. Related Reading Recent reports indicate that ETH has likely bottomed, paving the way for a trend reversal to the upside. Another report by Steno Research suggests that ETH is likely to outperform BTC in 2025, with potential targets as high as $8,000. That said, concerns still remain about the Ethereum Foundation regularly dumping ETH. At press time, ETH trades at $2,661, up 0.1% in the past 24 hours. ETH trades at $2,661 on the daily chart | Source: ETHUSDT on TradingView.com Featured image from Unsplash, Charts from X and TradingView.com Source link
Bitcoin Dominance Tipped To Hit 57% — Altseason Incoming?
In the past week, Bitcoin recorded a net negative performance translating into a 5.73% decline in market prices. However, the premier cryptocurrency boosted its market dominance amid this turbulence as the altcoins suffered a larger collective loss. Interestingly, popular market analyst Egrag Crypto predicts Bitcoin Dominance could soon retrace indicating a potential short-term bust for the altcoin market. Bitcoin Dominance Forms Adam & Eve Pattern – Key Levels To Watch As Bitcoin prices moved with much volatility in the past week, the asset’s crypto market dominance rose to 61.0%; meanwhile, Ethereum and other altcoins saw their market shares shrink by 1.99% and 2.38% respectively. Commenting on this development, Egrag Crypto notes that Bitcoin Dominance has now completed an Adam and Eve Pattern highlighting certain significant levels for its future trajectory. Generally, the Adam and Eve Pattern is a bullish reversal chart pattern that consists of two distinct bottoms. The highest point between these troughs acts as a resistance which a price break above confirms a bullish trend. Recently, Bitcoin Dominance moved above this neckline resistance (59%). However, Egrag Crypto explains a stronger resistance lies at 62.30% capable of forcing a pullback to around 61.50%. However, if Bitcoin Dominance fails to hold at this critical support level, a more pronounced decline could be in store, potentially driving Dominance to around 57%. In line with basic market dynamics, Egrag Crypto’s projection proving true would translate to a rise in altcoin market shares indicating a potential boost in altcoins prices in the short term. Is An Altseason Still Feasible? While Egrag Crypto’s prediction of a declining Bitcoin Dominance might mean some altcoins gain, the possibility of an altseason remains in the air. For context, the altseason marks a period in the bull run where altcoins outperform Bitcoin. This is indicated by a fall in Bitcoin dominance amidst a general surge in crypto asset prices. In a recent blog post, analytics firm IntoTheBlock highlights several factors: low level of network addresses, lack of real-world utility, and unfavorable macroeconomic conditions all of which are currently preventing the manifestation of an altseason. Notably, there is also an absence of compelling narratives such as NFTs or DeFi which served as bullish drivers in previous altcoin seasons. The analysts at IntoTheBlock postulate that until these issues are addressed, investors are likely to experience isolated price surges in e.g. memecoins rather than a widescale altseason. At press time, the crypto market remains valued at $3.13 trillion following a slight 0.07% increase in the past day. As earlier stated, Bitcoin maintains a 61.0% dominance, followed by Ethereum (10.1%) and other altcoins (28.9%). Featured image from Shutterstock, chart from Tradingview Source link
Crypto Market Top Near? Here’s Why There’s ‘Some Runway Left’
Este artículo también está disponible en español. After the recent crypto market corrections, some investor’s and market watchers’ bullish sentiment appears to have decreased, with many claiming the top is in. However, other analysts point out that several indicators don’t signal a cycle peak yet, suggesting that the bull still has some gas in its tank. Related Reading Crypto Market Capitalization Retests Key Level The crypto market has recently suffered continuous corrections that have halted the momentum from the post-US election. During the November-December rally, the industry achieved many milestones, including Bitcoin’s breakout from the $100,000 barrier for the first time in history. The crypto market also surpassed its 2021 all-time high (ATH), reaching a market capitalization of $3.73 trillion on December 17, 2024. Nonetheless, its recent shakeout sent the total crypto market cap (TOTAL) to its lowest range in nearly three months. On Monday, the market retraced to the $2.8 trillion mark, briefly losing the key $3 trillion support level before bouncing. Market observer Daan Crypto Trades highlighted that the TOTAL chart retested the 2021 ATH during the pullback, turning the weekly candle “into a pretty interesting one.” Total crypto market capitalization holds above 2021 ATH. Source: Daan Crypto Trades on X The trader explained that the $3 trillion mark is crucial to hold going forward despite the chart showing “plenty of demand for the time being.” Meanwhile, the $3.7 trillion mark remains the key resistance level, as it is “what’s in the way of further expansion higher.” Daan also noted that the Altcoins market capitalization, which excludes Bitcoin and Ethereum, swept the 2024 highs and bounced after briefly losing its current range during the market correction, which could suggest that the long-awaited altseason is still ahead. He pointed out that Altcoins might continue moving sideways within their current range, but a breakout could see them test the December highs, as they are yet to break their 2021 ATH properly. Cycle Top Coming In Q4? Analyst Sjuul from AltcryptoGems shared an analysis of the total crypto market chart. The analyst stated that he doesn’t see the “warning signs” other investors and market watchers have mentioned online. From a technical perspective, the crypto market’s rally is a “straightforward support and resistance situation” since flipping the 2021 ATH level, which the market is currently holding. Sjuul compared this cycle to the previous one, stating that it technically is the beginning of the “real bull run.” Timewise, the chart presents various similarities between the two cycles, suggesting the top is around 230 days away. Crypto market’s performance over the last few cycles. Source: AltCryptoGems He explains that the 2021 breakout from the previous cycle’s top occurred 1,120 days from the 2017 ATH. Additionally, the 2021 cycle top occurred 1,400 days after the 2017 peak. Related Reading Meanwhile, this cycle’s breakout from the 2021 ATH happened approximately 1,120 days after the top, similar to the last cycle. If history repeats itself, this cycle’s timing suggests that the crypto market top is around 7-9 months away. Ultimately, the analyst projected the market peak to occur in Q4 2025 and potentially hit a market capitalization of $4.5 trillion. Total crypto market capitalization is at $3.13 trillion in the one-week chart. Source: TOTAL on TradingView Featured Image from Unsplash.com, Chart from TradingView.com Source link