Ethereum has seen a 5% increase, reaching $2,618, indicating potential further gains if it breaks through resistance at $2,829. This upward movement is accompanied by rising volatility and a significant number of leveraged position liquidations.

Technical Analysis: Consolidation and Potential Breakthrough

Technical indicators suggest Ethereum is consolidating within a triangular formation, indicating that if it maintains its upward momentum, a breakout may occur. Ethereum currently faces competition from Solana, which recently secured $10 million in new funding, while Ethereum has recorded negative cash flow.

In recent days, Ethereum (#ETH🔥🔥🔥🔥 ) has gained significant value, increasing by over 5% and stabilizing at $2,618 at the start of European trading on October 29. This rise comes alongside Bitcoin (#BTC☀ ) reaching $71,000, indicating an overall optimistic trend in the cryptocurrency market.

Increased Interest in Ethereum Despite Volatility

Ethereum is nearing a key resistance level, attracting the attention of traders and analysts who see the potential for short-term gains. The current market valuation of Ethereum stands around $315 billion, with a daily trading volume of approximately $23 billion. Over the last 24 hours, Ethereum’s leveraged market has seen around $40 million in liquidations, mostly affecting short positions. This liquidation activity points to increasing volatility as investors speculate on further price movements.

Potential Breakthrough Indicated by Technical Analysis

Technical analysis reveals that Ethereum is trading within a weekly triangle pattern, often signaling an imminent price breakout. This consolidation phase has created a narrow trading range around a critical resistance point. If Ethereum can consistently close above the $2,829 mark, analysts believe it could pave the way for a more substantial price increase.

In the long term, Ethereum maintains an upward trend, which acts as a significant support level. This trendline reinforces Ethereum’s potential for continued growth. The current market action suggests a bullish outlook, though achieving sustained gains will require Ethereum to overcome additional resistance levels.

Increasing Competition from Solana and Negative Cash Flow

Despite its recent price increase, Ethereum faces growing competition from Solana (SOL), which is gaining traction in decentralized finance (DeFi). Solana attracted $10 million in new investments last week, whereas Ethereum recorded cash outflows.

Additionally, ether-based spot ETFs in the United States saw outflows totaling over $25 million in the past two weeks, with Grayscale’s ETHE product accounting for a significant portion of these outflows. The rivalry between Ethereum and Solana is intensifying as both networks expand their ecosystems and target institutional and retail investors.

Ethereum remains the dominant platform in the web3 space, with over $49 billion in total value locked (TVL) and a stablecoin market cap of $84 billion. However, Solana’s growing adoption is drawing market attention and presenting a challenge to Ethereum’s DeFi dominance.

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