Ethereumsurgedover5%to$2,618,signalingpotentialgainsifitbreaks$2,829resistanceamidrisingvolatilityandleveragedliquidations.
TechnicalanalysisshowsEthereumconsolidatingwithinatriangularpattern,withabreakoutlikelyifitsustainsupwardmomentum.
EthereumfacesincreasedcompetitionfromSolana,whichgained$10Mininflowslastweek,whileEthereumexperiencednegativecashflow.
Ethereum(ETH)sawasignificantpriceincrease,climbingover5percenttoreach$2,618inearlyEuropeantradingonOctober29.ThisuptickcomesasBitcoin(BTC)achievedahighof$71,000,markinganotablerallyinthebroadercryptocurrencymarket.
Notably,asEthereumconsolidatesnearacriticalresistancepoint,tradersandanalystsaremonitoringpotentialshort-termgains.Atpresent,Ethereum’smarketvaluationhoversaround$315billion,withitsdailytradingvolumeestimatedat$23billion.
#ETH,warmingup..https://t.co/xITZT5Nqfvpic.twitter.com/QpigPDAOZc
—ᴀʟᴛꜱᴛʀᴇᴇᴛʙᴇᴛꜱ(@AltstreetBet)October29,2024
Inthepast24hours,Ethereum’sleveragedmarketexperiencedapproximately$40millioninliquidations,primarilyinvolvingshorttraderswhowerepositionedagainstrecentupwardpricemovement.ThisliquidationactivitysignalsincreasedvolatilityintheEthereummarket,asinvestorsanticipatepossiblepriceshifts.
TechnicalAnalysisSignalsPotentialBreakout
Moreso,fromatechnicalanalysisperspective,Ethereumispositionedatthepeakofaweeklytriangularpattern,whichoftensuggestsanimminentpricebreakout.Thisconsolidationphasehascreatedanarrowtradingrange,reflectingacriticalpointofresistance.IfEthereumclosesconsistentlyabovethe$2,829mark,analystsbelievethiscouldestablishafoundationforamoresubstantialpricerally.
Furthermore,Ethereum’spricemovementcontinuestoalignwithasignificantrisingtrendthathasbeendevelopingoverthepastyear.Thistrendlineactsasacriticalsupportlevel,reinforcingEthereum’slong-termgrowthpotential.Currentpriceactionindicatesabullishoutlook,yetsustainedgainswillrequireEthereumtoovercomeadditionalresistancelevels.
EthereumCompetesWithSolanaAmidDecliningCashFlow
However,despiteEthereum’srecentpricegrowth,itfacesheightenedcompetitionfromSolana(SOL),whichhasgainedtractionindecentralizedfinance(DeFi)applications.RecentreportsshowSolanainvestmentproductsattracted$10millionincashinflowslastweek,whileEthereumsawanegativecashflowincontrast.
Additionally,Ether-basedspotETFsintheUnitedStatesreportedover$25millionincashoutflowsduringthepasttwoweeks,ledbyGrayscale’sETHE.TherivalrybetweenEthereumandSolanahasintensifiedasbothnetworksstrivetoexpandtheirecosystemsandattractinstitutionalandretailinvestors.
Moreover,Ethereumremainsthedominantweb3networkwithover$49billionintotalvaluelocked(TVL)andastablecoinmarketcapof$84billion.However,Solana’sgrowingadoptionratescontinuetocapturemarketattention,posingcompetitiontoEthereum’sDeFidominance.
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