Ethereum Rebounds Amid Stagnation
Ethereum (ETH) is witnessing a resurgence, often referred to as its “secondary bull run.” Following a period of stagnation during Bitcoin’s (BTC) surge to $100,000, Ethereum is now reversing this trend. Over the past week, ETH has climbed 10%, marking a 46% increase over the past month to reach $3,996.
Market analysts highlight that Ethereum has entered a critical phase, characterized by faster and higher price movements. They anticipate that ETH may surpass its all-time high of $4,900, buoyed by both technical and fundamental factors.
Technical Signals Point to Further Growth
Illia Otychenko, lead analyst at Gibraltar-based crypto exchange CEX.io, identifies bullish signals in Ethereum’s recent performance. According to Otychenko, the weekly Relative Strength Index (RSI) broke its descending resistance trendline, a move historically associated with bullish momentum.
He also noted the Moving Average Convergence Divergence (MACD) indicator experienced a “bullish crossover,” often marking the start of significant price rallies. Otychenko believes these patterns suggest ETH could rise to $5,000–$6,200 by Q1 2025, with $5,600 as an average target.
Historically, Ethereum has outperformed Bitcoin in the first quarter, with ETH gaining an average of 93% compared to BTC’s 56%.
ETH Funding Rates Signal Bullish Momentum
CryptoQuant analyst ShayanBTC underscores the significance of Ethereum’s funding rates, which recently climbed above 0.04. This metric indicates growing bullish sentiment in the futures market, with traders expecting ETH’s price to rise.
Funding rates reflect the cost of holding positions in crypto futures contracts. A higher funding rate signals strong demand for long positions, which can drive price surges. However, the current rates remain below the peaks observed during ETH’s 2021 rally, indicating the market has yet to overheat.
Institutional Confidence Boosts Ethereum’s Outlook
Ben Kurland, cofounder of DYOR Labs, attributes Ethereum’s recent price action to both market sentiment and robust fundamentals. ETH recently surpassed the $4,000 mark, reflecting growing adoption and institutional confidence.
Ethereum’s ecosystem supports decentralized finance (DeFi) protocols, with $78.7 billion in total value locked, according to Defillama. Additionally, innovations like NFTs continue to rely on Ethereum, underscoring its utility-driven growth.
Challenges Ahead: Inflationary Trends
Despite its growth, Ethereum has faced inflationary pressures. Data from Ultra Sound Money reveals an increase in ETH supply by 374,553 since April, leading some to question its long-term value.
Ethereum’s Path to $10,000
Experts remain optimistic about Ethereum’s future. Laurent Zhang, president of the Arcology Network, predicts ETH will exceed its $4,900 high within six months, driven by its practical applications in areas like Real World Assets (RWA).
Ben Kurland suggests Ethereum could even reach $10,000 in this cycle, provided institutional interest continues to grow and market conditions remain favorable. The approval of spot ETFs for Ethereum has already attracted over $1.4 billion in investments, a testament to its rising institutional appeal.
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