Ethereum (ETH) has broken through a key resistance level, starting a new upward trend. As technical analysts and whale investors show increasing interest, Ethereum is expected to surpass Bitcoin and retest its all-time highs. With altcoin season approaching, Ethereum is emerging as a strong investment opportunity.
Ethereum Breaks Resistance and Signals an Uptrend
Over the past week, Ethereum has been hovering around the $2,650 resistance level before making a significant breakout, signaling the start of an upward trend. Following the crypto market crash on August 5, Ethereum established a solid support zone between $2,223 and $2,320, offering a safe haven for investors.
With a fully diluted market cap of approximately $328 billion and an average daily trading volume of $16.2 billion, Ethereum has gained over 3% in the last 24 hours, testing the critical $2,748 resistance level. This recent price movement has allowed Ethereum to outperform Bitcoin (BTC), reaching its highest levels since July.
Why is Ethereum Being Preferred Over Bitcoin?
Despite Bitcoin’s strong performance throughout 2023, analysts predict that the altcoin market will soon outpace BTC. Ethereum’s deep liquidity and broad use cases in the web3 space make it stand out as global adoption of digital assets increases. Many investors believe that with the approaching altcoin season, Ethereum is poised to retest its all-time highs.
Growing Demand from Whales
Interest in U.S. spot Ether ETFs has surged, particularly led by major investment firms like BlackRock. Last week saw $78.89 million in net cash inflows, although total net inflows have decreased to negative $479.9 million. This trend reflects the growing optimism of large investors toward Ethereum.
From a technical perspective, Ethereum is showing strong signals of recovery. Renowned technical analyst Peter Brandt highlighted that Ethereum successfully broke out of a symmetrical triangle formation, exiting its daily downtrend. Additionally, Ethereum’s price against the U.S. dollar has broken out of a head-and-shoulders formation, signaling a bullish outlook. The double-bottom formation in RSI and rising divergences suggest Ethereum is also gaining strength against Bitcoin.
A Promising Future for Ethereum
Both technical analysts and institutional investors continue to show confidence in Ethereum, pointing to significant upside potential in the altcoin market. With strong trading volumes, ETF inflows, and robust on-chain activity, Ethereum is proving to be a promising digital asset for investors.
In light of these developments, Ethereum is expected to remain a preferred investment over Bitcoin, offering strong potential for both short- and mid-term gains.
As reported by Turkish NY Radio, Ethereum’s recent breakout and increasing demand from institutional investors position it as a strong competitor to Bitcoin. With its growing influence in the altcoin market, Ethereum presents a powerful investment opportunity for those seeking exposure to digital assets.
