On July 10, Ethereum (ETH) experienced a remarkable surge, breaking free from a stagnant four-week trading pattern to surpass the $2,700 mark. Currently priced above $2,800, Ethereum witnessed a 6.2% rise over the past day. This impressive performance positions Ethereum ahead of Bitcoin and other prominent digital currencies, sparking discussions about a potential altcoin rally.
Which Technical Indicators Signal Ethereum’s Potential?
Commencing the month at $2,484.51, Ethereum has shown a substantial 17.04% increase so far in July. Its one-day climb of 6.2% far exceeds Bitcoin’s more modest 2.2% increase. The open interest in Ethereum futures on the Chicago Mercantile Exchange has reached $3.27 billion, marking a record high since February 2. Additionally, institutional interest in Ethereum is evident, with eight consecutive weeks of net inflows into spot Ethereum ETFs.
Technically, Ethereum’s price has securely established itself above the 50, 100, and 200-day moving averages. The range between $2,650 and $2,750 serves as a support level. With the Relative Strength Index (RSI) at 66.71, buying demand remains strong, though Ethereum’s trajectory could encounter challenges due to potential profit-taking between $3,000 and $3,300.
Is the Altcoin Season on the Horizon?
According to Swissblock, the next 72 hours are pivotal for Ethereum’s continued performance against Bitcoin. If Ethereum’s momentum holds, it could herald an altcoin market dominance reminiscent of 2021. Such a scenario might lead to accelerated investment in medium-sized altcoins, possibly ushering in an altcoin season.
Swissblock emphasizes, “The next 72 hours are critical. Sustained momentum could mark a new phase in altcoin dominance not seen since 2021.”
However, if Ethereum’s price dips below $2,750, its upward momentum could wane. Experts note that a retreat would likely see $2,375 as the first major support line. Consistent buying and daily closes over $2,795 are vital for the uptrend to continue.
Key takeaways from Ethereum’s recent activity include:
- Ethereum’s 6.2% increase outpaced Bitcoin’s gain.
- Interest in Ethereum futures is at its highest since February.
- A sustained rise could signal the start of an altcoin season.
The surge in Ethereum signals a dynamic shift in the cryptocurrency market, potentially paving the way for a new phase in altcoin prominence. Investors and market watchers eagerly anticipate the implications of Ethereum’s recent rally, especially in relation to Bitcoin and the broader market landscape.
