The recent price performance of Ethereum has left many investors disappointed, with the altcoin closing the first four months of the year at a loss. However, there seems to be a resurgence in the ETH price, as it has surged above the $2,600 level over the weekend.
A well-known trader on the social media platform X has shared a positive outlook on the trajectory of Ethereum’s price. The trader believes that ETH is poised to surpass Bitcoin, the largest cryptocurrency by market capitalization, in the coming months.
In a recent post on X, pseudonymous crypto trader Axel Bitblaze delved into the reasons why Ethereum is in a strong position to outperform Bitcoin. Bitblaze highlighted several factors contributing to the potential growth of Ethereum in the near future.
One of the key points mentioned by Bitblaze is BlackRock’s reported purchase of 7,976 ETH, worth approximately $18.9 million, and their push for staking exchange-traded funds. The trader believes that the approval of ETF staking could bring in substantial institutional demand.
Furthermore, Bitblaze pointed out the accumulation of ETH by whales, with on-chain data showing that whales have purchased 138,511 ETH, worth around $337 million, in the last 48 hours. This, coupled with $434 million in short liquidations, has provided momentum to the Ethereum price.
Bitblaze also noted that more liquidity seems to be flowing into Ethereum compared to Bitcoin, as ETH’s trading volume surpassed BTC’s volume for the first time in years. Additionally, the Ethereum Pectra upgrade, implemented on May 7, has introduced deflationary pressure by burning approximately 38,000 ETH in a few days.
However, Bitblaze cautioned investors to be mindful of the current market sentiment, which appears to be overheated. While on-chain data suggests a bullish environment, the Fear & Greed Index is indicating extreme greed, which could lead to minor price pullbacks.
Despite the caution, Bitblaze believes that the Ethereum token is aligning favorably, paving the way for potential price surges. The trader anticipates that the ETH price could reach $2,800 or even $3,000 before experiencing significant corrections.
At present, the price of ETH stands at around $2,580, marking a more than 10% increase in the past 24 hours and a remarkable 40% surge in the last week, according to CoinGecko data.
In conclusion, while the Ethereum price performance has been lackluster in the past months, recent developments and market trends indicate a positive outlook for the altcoin’s future. Investors should monitor the market closely and be prepared for potential price fluctuations as Ethereum continues its journey towards potential new highs.