Ethereum: competition with bitcoin, "alt season" and new targets

The update of the all-time high on Ethereum yesterday raised its capitalization to almost $500 billion. As a result, Ethereum has grown by over 470% since the beginning of the year.

The second cryptocurrency is being fueled by growing institutional interest as well as the wider adoption of decentralized finance (DeFi) applications in the Ethereum ecosystem.

In yesterday's review, it was discussed that the growth in the number of active Ethereum addresses is one of the signs of the fundamental strength of the second cryptocurrency. Analysts at Negentropic, co-founders of chain analysis firm Glassnode, also note that Ether coins are leaving exchanges in cold storage. This suggests that buyers are not planning to sell anytime soon.

Other experts point out that the current rally has been triggered by spot buying rather than intense speculation in derivatives. Usually, under such conditions, the market grows steadily without the danger of "overheating". At the same time, open interest in futures on Ethereum remains high, and the demand for ETH options in April surpassed the demand for Bitcoin options for the first time.

Some experts interpret such dynamics and the ratio of interest in Ether and Bitcoin radically. For example, Lex Sokolin, chief economist at ConsenSys, believes that due to the high demand for DeFi and NFT, Ether will gain a use case advantage over BTC.

It is also noted that in the previous bullish cycle of the cryptocurrency, there was a transition of liquidity from bitcoin to other coins, with Ethereum historically being the main beneficiary of this movement. Experts from BlockchainCenter point out that now this "alt season" has also arrived.

Considering all these facts, we can conclude that the likelihood of further interest in Ethereum is high. But a lot will depend on how things go with ETH 2.0.

Opinions on Ethereum targets for 2025 vary, ranging from $20,000 to $100,000.

Locally, consistent technical analysis and the well-proven Fibonacci extension will help us in this process. After the price has consolidated above the 161.8 Fibo Expansion level (near 4211.07), we will look for new targets by stretching a new blue grid.

ETH/USD quotes have already consolidated above the 61.8 blue extension level. The nearest targets are 100 Fibo Expansion ($4,670) and 161.8 ($5,260 per coin).

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Ekaterina Kiseleva
Analytical expert
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