Ethereum (ETH) is the second largest cryptocurrency in the world by market capitalization, but there is a significant gap between it and Bitcoin (BTC) in absolute terms. Similarly, the performance of the two major digital assets varied widely throughout 2024.
At the time of writing, Bitcoin was trading at $96,044,00, with a year-to-date (YTD) increase of 127.15%. In contrast, Ethereum's return so far is twice as small at 62.01% year-to-date. However, on December 4th, ETH crossed an important threshold, reclaiming its monthly opening price and surging, with the price reaching just above the $3,800 mark for the first time since July.
ETH price year-to-date chart. Source: CoinMarketCap
Unlike Bitcoin, which has had long periods of sideways price fluctuations (at least by crypto standards), ETH has seen significant fluctuations throughout the year. Alternatives season has begun as larger competitors stall on their way to the $100,000 price range, but with many investors worried about a potential pullback, Ethereum's long-awaited surge may not materialize. was late.
Now that this critical resistance level has been breached, the ongoing altcoin rally is likely to regain momentum and gain momentum. However, the biggest question is what will happen to ETH, which stands to benefit most from the transition from BTC as a cryptocurrency. I will continue to do so.
Technical Analysis Suggests ETH Rise Is Just Beginning
Ethereum broke through the $3,800 mark on solid volume and is up 8.62% in the past 24 hours at the time of writing, lending credence to the position that this is not a false breakout. In late November, Finbold featured the work of two expert technology analysts, Alan Santana and Rekt Capital.
Santana noted that weekly volumes are at levels not seen since November 2022, with volumes ranging from $4,011, $5,800, $7,322, and finally $7,871 based on previous market cycles. This suggested that the target price was justified.
Meanwhile, Rekt Capital highlighted that the asset is exhibiting a bullish flag chart pattern, which suggests that the previous resistance at $3,700 will be retested.
Similarly, trading expert CryptoBullet shared a long-term price chart in his December 2nd X post that suggests ETH is currently in the breakout phase of a long-term cup-and-handle pattern.
ETH cup and handle chart pattern. Source: CryptoBullet by X
The current breakout could serve as a final confirmation of the pattern's validity. The analyst also set a target of $6,675, equal to the depth of the cup portion of the pattern that will be added to the breakout point.
Featured image via Shutterstock
