Ethereum (ETH) surges 10% to $2,670 after hitting $2,116 support.
ETH struggles against Bitcoin’s dominance, trading at 0.0437 ETH/BTC.
Analyst Ali Martinez predicts potential breakout to $2,820 despite bearish indicators.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has demonstrated remarkable resilience in the face of recent market turbulence.
After touching a critical support level of $2,116 earlier this week, ETH staged a powerful comeback, surging 10% in a 24-hour period to reach approximately $2,670 during the mid-London trading session on Friday.
With a substantial market valuation of $321 billion and a daily trading volume of $23 billion, Ethereum continues to assert its significance in the cryptocurrency landscape.
Ethereum in challenging position relative to Bitcoin
Despite this impressive rebound, Ethereum finds itself in a challenging position relative to Bitcoin. The ETH/BTC trading pair currently hovers around 0.0437, reflecting a prolonged period of underperformance against Bitcoin dating back to December 2021.
This struggle coincides with Bitcoin’s dominance reaching levels not seen since April 2021, highlighting the shifting dynamics within the crypto market.
The recent approval of spot Ether ETFs in the United States, rather than providing a bullish catalyst, has paradoxically led to a “sell-the-news” reaction. This sentiment has been further exacerbated by significant cash outflows from Grayscale’s ETHE, adding downward pressure on Ethereum’s price.
Looking ahead, Ethereum bulls face a potentially challenging landscape as the crypto industry braces for what historically have been bearish months in August and September.
However, a glimmer of hope emerges from the weekly chart, where the potential formation of a dragonfly candlestick pattern could signal a robust bullish move following a successful reversal.
