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 <a class="wpg-linkify wpg-tooltip" title="Altcoin
Altcoin is defined as any cryptocurrency except for Bitcoin. “Altcoin” is a combination of two words: “alternative Bitcoin” or “alternative coin”. There are over 1,500 altcoins with many more planned for release." href="https://www.newsbtc.com/dictionary/altcoin/" data-wpel-link="internal">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 <a class="wpg-linkify wpg-tooltip" title="
Altcoin
” href=”https://www.newsbtc.com/dictionary/altcoin/” data-wpel-link=”internal”>altcoin market.
Related Reading: Wall Street Veteran Kickstarts Own Bitcoin Fund With $25m Investment
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 <a class="wpg-linkify wpg-tooltip" title="
Coin
” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>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:
-Under allocated
-No pullbacks to enter
-Institutional interest
-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
