Crypto markets have rallied this year, Bitcoin has gained about 15% since January, and it has edged close to $112,000. Net inflows into Bitcoin ETFs topped $14.4 billion, proof of new institutional cash in the space. Trading volumes have climbed, and spreads have tightened. Yet, the strength sits unevenly across the market.
Bitcoin dominance stands near 64%, a sign that capital has flocked to the original cryptocurrency. At this level, altcoins have lost share, and their combined weight has shrunk. The Altcoin Season Index sits at 27, far from the heights of past bull runs. Analysts say a reading below 30 often marks peak capitulation before a fresh surge.
Ethereum has lagged through this cycle. Bitcoin notched new highs multiple times, most recently around $112,000 in May. Ether has failed to break its previous peak. Institutional flows and demand have yet to push prices past that ceiling.
Bitcoin has surged roughly 264% since its November low. It nearly reached $112,000 several times this year. Ethereum rose about 46% over the same time period. It never challenged its prior peak. That gap pushed Bitcoin dominance above 64 and left most altcoins behind.
The ETH/BTC ratio tells a similar story. It fell from 0.05, the last cycle’s peak, to 0.015 in April. Since then, it climbed back to 0.024. That move suggests investors have rotated toward Ether. A break above 0.025 could mark a shift in relative strength.
Ethereum Bullish Rally Incoming?
Ethereum bulls have gained traction as on-chain metrics shift in their favor. Exchange reserves have decreased from over 30 million ETH in late 2021 to just under 19 million today. With roughly 30% of that supply locked in staking, far less tokens stand ready to hit the market. Meanwhile, spot ETF approvals and upcoming protocol upgrades could attract fresh buyers.
Ethereum price has stopped just above $2,500 and recently tested $2,650 resistance. A break above $2,700 might spark a rapid move toward $3,000. At that point, short sellers could rush to cover, pushing the volatility higher.
If exchange reserves keep dropping and capital rotates back into altcoins, Ethereum stands poised to lead the next leg up. All signs point to a bullish rally coming soon.
Ethereum Price Prediction: Technical Analysis
Ethereum sits just above its 200-day exponential moving average, a key support near $2,550. At $2,661, it rests at the 50 percent retracement of its demand zone, marked between roughly $2,400 and $2,900. That setup places a price between buying interest below and selling pressure above.
The demand zone shows two strong rallies, one in May and another in June. Both times, buyers stepped in near $2,400 and pushed the price back toward the supply area around $2,840. That higher zone held sellers in December and April, capping rallies before the mid-year pullback. Now, with the 200-EMA rising toward the midpoint, bulls have technical backing.
The volume profile to the right shows heavily traded prices clustering near $2,800. If Ethereum can break above that point and clear $2,840, this level will turn into a major support, where fresh supply waits. However, a drop below the 200-EMA could lead the price to retest $2,400. A break below this level would shift momentum negative and risk a slide toward the April low near $1,500.
Short-term traders should watch how the price reacts around today’s level. A strong bounce off the EMA could fuel a breakout attempt. Failure to hold it may draw out stops under the demand zone. Overall, holding above the 50% mark gives bulls a base for a rally, while a clear move above the supply zone would confirm a shift to a sustained uptrend.
Ethereum’s strength above its key trend line signals more than a single rally. It may pave the way for a broader altseason. On-chain data shows that the locked supply has reached record highs, exchange reserves continue to fall, and investor interest keeps climbing.
The technical indicators indicate an Ethereum bullish rally. Should bulls hold support and break resistance near $2,700, momentum could shift in favor of smaller tokens. Traders and institutions may then shift their focus to the emerging projects. Prepare for volatility, actively manage risk, and adjust positions as altcoins begin to shine.