Driven by continuous investment in institutional ETFs, Ethereum has rebounded over 100% from $1,380 to above $2,800.
Analysts predict that by the end of this year, Ethereum's price could reach between $10,000 and $14,000.
The breakout of the ETH/BTC currency pair is a key trigger factor for a major altcoin bull market.
With Bitcoin breaking the $110,000 mark last night, Ethereum (ETH) also rebounded significantly, breaking the $2,800 price point. Notably, the last time ETH broke the $2,800 mark was in February, after which it fell to as low as $1,380.
As of the time of writing, Ethereum is trading at $2,787, slightly down but still maintaining a 5% daily gain. Ethereum's market capitalization is $336.57 billion, with a 24-hour trading volume of $34.43 billion, and its strong momentum is attracting the attention of market watchers. They are speculating on how this will affect the broader altcoin market.
What is driving Ethereum?
The strong rise in Ethereum's price is attributed to significant participation from institutional investors, especially through ETFs. The Ethereum spot ETF has seen continuous inflows for 16 trading days. The latest data from Tuesday shows a total new investment amount of $125 million.
Most of this inflow of funds comes from BlackRock, which purchased $80.6 million worth of ETH, while Fidelity bought $26.3 million worth of ETH. Grayscale also saw an inflow of $9.7 million, and Bitwise increased by $8.4 million.
In recent months, this institutional participation has largely driven ETH's rebound of 103%, rising from $1,380 to $2,800, due to ongoing new investments in Ethereum ETFs.
How high can ETH go?
Ethereum is currently trading 43% below its historical high of $4,891. Meanwhile, Bitcoin is in a price discovery phase, continuously breaking new highs. As Ethereum gradually builds momentum, speculation about the next move of ETH is increasing.
Geoff Kendrick of Standard Chartered predicts that driven by the ETH spot ETF and network upgrades enhancing scalability, ETH could reach $14,000 by the end of the year. Meanwhile, community analyst Crypto Rover believes that Ethereum's technical setup is a precursor to reaching its $10,000 target.
What is the performance of altcoins?
Given the bright prospects for Ethereum, many expect the broader altcoin market to follow suit. Crypto Beast proudly announced in an article on X that the altcoin season has officially begun. He urged investors to prepare their positions and predicted that the next 4-5 months would be an epic period, with millions of dollars in profits emerging.
He shared a screenshot showing that altcoins like AAVE, DEXE, UNI, and WIF achieved double-digit percentage growth in the past 24 hours.
Analyst Sercan YILDIZ believes that the arrival of the next altcoin bull market depends on whether Ethereum can strongly surpass Bitcoin. Since August 2022, ETH's performance has lagged behind BTC, and a breakout of the ETH/BTC trading pair is seen as a key factor triggering a major rebound.
YILDIZ emphasized that a trend reversal in the ETH/BTC chart would signal the start of a four-month altcoin bull market, potentially bringing 50 to 100 times returns across the market. He believes the real altcoin rally has yet to begin and pointed out that those predicting the end of the bull market are premature.
YILDIZ urged investors to stay alert and predicted that the upcoming rebound could change investment portfolios and financial prospects.
