The price of Ethereum (ETH), the second-largest cryptocurrency, has surged over the past month. The recent bull run in the cryptocurrency market, coupled with participation from BlackRock, has pushed ETH to a year-to-date high of $2,139.

Ethereum overtakes Bitcoin and altcoins

ETH has outperformed BTC and many altcoins in recent weeks, marking a shift in market dynamics, according to market data provider Kaiko.

Kaiko’s report highlights how ETH has struggled to gain momentum over the past year, despite successful upgrades such as April’s merger.

However, the sentiment surrounding ETH changed dramatically when BlackRock filed for a spot ETH exchange-traded fund (ETF), causing the ratio of ETH to Bitcoin (BTC) to reverse.

The impact on the market was huge, with ETH prices surging above $2,000 for the first time since April. Additionally, daily spot trading volume reached $7 billion, the highest level since the FTX collapse.

ETH ETF claims have further fueled the ongoing rally, which has been further amplified by improving global risk sentiment and falling U.S. Treasury yields.

Altcoin+ETH trading volume dominance relative to BTC has risen to 60%, the highest level in more than a year. During bull rallies, altcoin trading volumes typically increase relative to BTC.

The surge in demand has also led to an increase in leverage, reflected by ETH open interest returning to early August levels. Notably, BTC open interest has declined over the past month due to liquidations on Binance, leading the Chicago Mercantile Exchange (CME) to surpass Binance as the largest BTC futures market.

Additionally, ETH funding rates, a measure of sentiment and bullish demand, have reached their highest levels in more than a year, indicating a major shift in sentiment. In November, BTC and ETH 30-day volatility rose to 40% and 50% respectively, before falling to multi-year lows around 15% over the summer.

Cryptocurrency Experts Predict ETH Breakout

Renowned cryptocurrency expert Michael Van de Poppe believes that ETH is on the cusp of a major breakthrough. Van de Poppe said that if Ethereum can break above the key $2,150 resistance level, it could spell the end of the bear market.

Van de Poppe drew comparisons to Bitcoin’s key $30,000 mark, arguing that a break above this level could pave the way for a significant rally, potentially pushing Ethereum prices towards $3,100 to $3,600.

However, Ethereum is yet to hit the $2,150 resistance line as it faces a pre-existing hurdle of the yearly high of $2,139. This key level halted the cryptocurrency’s bullish momentum and acted as strong resistance.

As a result, Ethereum has been consolidating within a tight range between $2,050 and $2,100 for the past three days.

The coming days will reveal whether Ethereum is able to overcome its immediate resistance and establish a consolidated position above it. Alternatively, it could face a similar fate to Bitcoin, which failed to break above $31,000 levels in more than seven months before reaching its current trading price of $36,000.

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