The market has been pumping for quite a while now! The interesting thing? Ethereum is one of the biggest gainers among top altcoins — a rare performance worth mentioning, especially considering the difficult history Ethereum has faced over the past four years (something any $ETH holder can relate to). But why has this pump happened, and is it the beginning of a real comeback for the prince of crypto ?
The Situation Of Ethereum
Right now, Ethereum is facing strong resistance in the $2,300–$2,500 price zone, after a solid bounce from the $1,500 level, a very strong move for the second most capitalized crypto. However, Ethereum is still far from its all-time high of $4,800 set four years ago during the last cycle.
As you may have noticed, $ETH has been mocked for its underperformance compared to Bitcoin and so-called Ethereum killers like Solana or Sui. And honestly, that criticism is valid, many of these competitors have already reached new all-time highs this cycle, unlike $ETH.
This chart sums it up well: it shows the value of $ETH against $BTC. When the line goes down, $BTC is outperforming; when it goes up, $ETH is outperforming. As you can see, despite the recent pump, the long-term trend of Bitcoin outperforming has not yet reversed.
Why the Pump ?
One major reason is the Pectra update, Ethereum’s first major upgrade since the Merge, which transitioned the network from Proof of Work (PoW) to Proof of Stake (PoS). Pectra has been highly anticipated by Ethereum users and includes features such as :
- Account Abstraction
- Increase in staking cap (from 32 to 2048 $ETH)
- Improved Layer 2 scalability
Updates like these always draw attention from investors and give Ethereum some much-needed media exposure. And the rollout went smoothly, perfect for boosting investors confidence.
Source : Twitter (X)
Looking at the chart, the recent bounce occurred on a strong RSI support zone that Ethereum has held since 2018. Each time there’s been a bear market, $ETH has revisited this level. So, some might say the real $ETH bull run hasn’t even started yet and a new all-time high could be on the horizon.
Overall, plenty of factors played a role in this pump, I could have talk about the ETH ETFs as well that shows a great momentum from institutional investors. For me the mometum is strong but have to reclaim support levels.
As always, thank you for reading !
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Disclaimer: This is not financial advice, you need to do your own research !
