Recent performance of Ethereum and market outlook

Yesterday, Ethereum performed quite strongly, with the price rebounding over 400 points from around 3250 at the bottom, surging to 3688. Although it currently faces some pressure around 3700, mainly due to previous Ethereum ETF approvals leading to some trapped positions, it is expected that this level will need some time to digest before continuing to push upward.

In Ethereum's ecosystem, many projects have rebounded from the bottom and achieved doubling, especially ENS which performed notably well, rising from below $20 to $37 in just a few days. Other projects in the Ethereum series have also seen varying degrees of increase, with LDO and OP being particularly noteworthy; if there are pullback opportunities, they can be considered for investment.

From the perspective of catch-up, ORDI has not yet started, but once it erupts, it may see significant gains. ORDI was the leader of a small bull market, so now is a good time to enter at low levels. The current price is around $40, which is quite cost-effective, with target ranges of $50 to $60.

In addition, the BNB project is also worth attention. As the leader among platform tokens, BNB is relatively lagging among high market cap projects and still has room for catch-up. If you have made substantial profits in other projects, consider switching to a dollar-cost averaging strategy with BNB to seize the catch-up opportunity. The downside potential for BNB is limited, with future upward targets around $1000.

Market trends and cyclical breakthroughs

US stocks are closed tonight, and Bitcoin is expected to show a volatile trend, focusing on the catch-up opportunities of altcoins. Once the catch-up is complete, the market may welcome a pullback. Bitcoin has yet to complete its pullback; only by breaking previous highs can it be considered complete. However, I personally believe that it will still take some time and strength for the market to break through $100,000, as many altcoin catch-ups are yet to finish.

The explosive cycle of Ethereum is about to arrive, and the market is welcoming a new round of cyclical breakthroughs. With continuous inflows of capital, ETH is gradually becoming the new market leader after Bitcoin.

Growth potential of ETH

According to on-chain data, ETH's daily active addresses have increased by 27%, and on-chain transaction volume has also increased by 32% month-on-month, indicating that ETH is welcoming continuous capital inflow. The TVL of L2 ecosystems, such as Arb and Op, has exceeded $10 billion, further promoting the expansion of the ETH network.

Changes in BTC.D and the proportion of stablecoins: A precursor to a cyclical turning point

Currently, BTC.D (Bitcoin dominance) along with USDT.D and USDC.D proportions has reached 68%, close to the previous cycle's 74%. However, BTC.D is approaching the top region, and the possibility of a breakout is low, with funds gradually flowing into ETH and the altcoin market. This indicates that a market turning point is about to arrive, and ETH is expected to take over the baton of the upward trend.

Historically, whenever BTC.D consolidates at high levels, ETH often becomes the main force driving a new round of market trends.

The cyclical pattern of liquidity transfer after Bitcoin doubles

Looking back at the last cycle (2021), Bitcoin broke through $40,000 after consolidating around $20,000, followed by an explosion of ETH and altcoins. Now, Bitcoin has doubled from $49,000 and stabilized, while on-chain data shows that ETH is welcoming large capital inflows, laying the foundation for a new upward cycle.

Historical patterns of ETH's strong quarterly performance

Historically, ETH has performed particularly well in the first and second quarters:

Q1/Q2 2021: ETH rose by 160% and 81% respectively, becoming the market focus.

Q1/Q2 2024: With the expansion of on-chain applications and adjustments in funding structures, the upside potential of ETH and related altcoins is expected to further amplify.

Growth of staked ETH: Trend of fund inflow

The circulating supply of ETH is gradually decreasing, with the total amount of staked ETH exceeding 50 million, and the number of addresses holding coins on-chain for over a year has reached a new high. This indicates that more and more capital is entering the ETH market, preparing for the upcoming explosion.

Summary

The upward cycle of ETH has just begun, and the market's capital flow and historical patterns are paving the way for ETH's explosion. With changes in BTC.D and the proportion of stablecoins, as well as the continuous expansion of the ETH ecosystem, ETH and related altcoins are expected to become the main players in the next market rally. Investors should seize this critical moment to welcome ETH's strong performance.

Today's article ends here; welcome to come to the homepage to play together~

Investing carries risks, and the above content is purely personal sharing, not investment advice!