- Ethereum, the second largest cryptocurrency by market capitalization overshadowed Bitcoin and Dogecoin, yielded 10.4% gains overnight.
- Analysts have predicted a correction in Ethereum price before the altcoin’s climb to the $1,600 level.
- The flippening narrative, where Ethereum’s market capitalization exceeds that of Bitcoin became relevant yet again, proponents wait for ETH’s big move.
Ethereum price yielded nearly 13% gains overnight for holders, leaving Bitcoin, Dogecoin and other altcoins to bite the dust. Analysts believe the narrative of Ethereum’s market capitalization exceeding that of Bitcoin has become relevant. Proponents are waiting for Ethereum’s big move as the altcoin prepares to flip Bitcoin.
Also read: Bitcoin price: Will BTC break $28,500 after record-breaking period of low volatility?
Flippening on the horizon as Ethereum outperforms Bitcoin in massive rally
Bitcoin’s price volatility hit historical lows over the past week. The largest asset by market capitalization bit the dust as competitor altcoin Ethereum yielded massive overnight gains for holders. Ethereum price briefly touched the $1,500 level on October 26, and the second-largest cryptocurrency is up 18.4% over the past week.
Proponents have attributed Ethereum’s bounce to broader market circumstances. US stock market indices have recovered, for the third day in a row there is growth in the S&P 500 and Nasdaq. Since the crypto market enjoys a high correlation with the US stock market, Ethereum’s recovery is considered related to the same.
Open interest for Ethereum surged dramatically on October 25. Open interest is defined as the amount of open positions (including both long and short positions) currently on a derivative exchange's ETH-USD trading pairs. It is considered a key indicator for Ethereum price trend.
Another key factor in Ethereum’s price rally is the altcoin’s supply. Based on data from the platform Ultrasound money, Ethereum’s total supply has increased by 13,086 tokens in 23 days. With rising on-chain activity and Ethereum’s monetary policy becoming deflationary, the altcoin’s total supply is closer to what it used to be on September 15.
Analysts predict correction before Ethereum’s price hits $1,600
Michaël van de Poppe, crypto analyst and trader believes Ethereum is prepared to make a massive move. The analyst was quoted as saying:
Great flip of $1,320 inducing continuation towards $1,500. [Ethereum] will flip [Bitcoin] this cycle, but now it's not the time to chase. Looking for some healthy corrections to play the next move to $1,600.
The analyst has predicted Ethereum price rally to the $1,600 level post a correction in the altcoin.
Markets are looking ready for consolidation and short-term correction.
— Michaël van de Poppe (@CryptoMichNL) October 26, 2022
Massive reaction upwards, as #Ethereum has been running from $1,300 to $1,600.
Therefore, some lower timeframe bearish divergences are in play, likely short-term correction and continuation.
Relief is here.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.