Ethereum is in the midst of rocketing higher despite stagnation in the Bitcoin price. Just minutes ago, the cryptocurrency pierced $1,100 after holding the $1,000 price level.
Chart of ETH's price action over the past few weeks from TradingView.com. ETH is now up by over 100% in the past 10 days due to the capital rotation from BTC into the altcoin market.
The cryptocurrency has since corrected back under $1,100 but remains up by over 36% in the past 24 hours. BTC is strongly underperforming in this latest leg of the bull market. Per CoinGecko, BTC is down 7.5% in the past 24 hours while Ethereum has gained nearly 40%.
This is a byproduct of Bitcoin profits cycling into altcoins at a rapid pace, which was something seen throughout 2017’s bull market.
Analysts expect this trend to continue as long as Bitcoin continues to consolidate between $32,000 and $34,000 as it did today.
A decisive break in either direction would likely end the ongoing price action that is currently playing out in the altcoin market.
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Ethereum Price Explodes Higher, And More May Be Coming
Ethereum is expected to move higher in the days and weeks ahead as the market seemingly remains under-allocated to the cryptocurrency.
Matt Kaye, a managing partner of Blockhead Capital, recently said that he thinks ETH will soon move to a new all-time high and beyond.
He noted that institutions are starting to take notice of Ethereum while trends surrounding DeFi will further drive demand for the coin.
With Grayscale’s Ethereum Trust also soon reopening, ETH should continue to see an influx of demand, Kaye suggested.
I don’t see how $ETH doesn’t rip through ATH & head toward $2k:
-No pullbacks to enter
-ETHE unlock (pay back borrow)
-New ETHE round opening w/ high premium
-$600 stim checks
-Lower unit cost & marketcap
-Defi / EIP 1559 / L2
-Name brand pic.twitter.com/qJX2REXhk7
— Matt.sBTC 🧐 (@Matt__Kaye) January 4, 2021
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Unsplash Chart from TradingView.com Price Tags: ethusd, ethbtc Ethereum Price Explodes Past $1,100 as Bitcoin Stagnates