In recent times, major institutional investors have been redirecting their attention from Bitcoin to Ethereum (ETH). On Sunday, October 22, 2023, ETH's price reached above $1,645, marking its highest point since the escalation of the Middle East crisis two weeks ago.
Data from on-chain sources indicates a surge in buying interest for ETH among US-based crypto whales trading on Coinbase Pro, reaching a 100-day high. Meanwhile, the interest in Bitcoin has somewhat cooled since Thursday.
Notably, technical indicators are signaling the potential for ETH's price rally to surpass that of Bitcoin in the upcoming days. This suggests a significant shift in the focus of institutional investors towards Ethereum.
Prominent Crypto Investors Shifting Their Attention from Bitcoin (BTC) to Ethereum (ETH).
As the Middle East crisis escalated in early October, Ethereum's price, like the broader global crypto market, faced a significant decline. To stimulate a market recovery and protect against the impending economic uncertainties, investors redirected a substantial portion of their capital inflows into Bitcoin (BTC). Consequently, Bitcoin's price swiftly surged by 13% to reclaim the $30,000 mark, outpacing other major altcoins like ETH, XRP, and Litecoin (LTC).
However, after a period of industry-wide stabilization and resurgence, notable crypto investors are now exploring opportunities to diversify their portfolios and allocate their BTC gains into the altcoin market. On-chain data sources indicate that Ethereum's price could be one of the prime beneficiaries of this evolving trend.
An important metric to watch is the Coinbase Premium Index, which reflects the percentage difference between Ethereum's prices on Binance and Coinbase. This metric holds significance because Binance dominates over 50% of global retail trading volumes, while Coinbase Pro caters to US-based corporate entities and high-net-worth investors seeking a more regulated crypto trading environment.
When the Coinbase Premium Index turns green or positive, it signifies that Ethereum's price on the Coinbase exchange has slightly surpassed the prices quoted on Binance. On October 20, this metric reached exceptionally high positive values, reaching a 100-day peak of 0.067%.
The last time ETH's price on Coinbase Pro exceeded Binance prices by such a margin was on July 13. During that period, Ripple (XRP) scored a significant legal victory against the SEC, prompting corporate investors to engage in a crypto buying spree. Within 48 hours, ETH's price surged by 6% from $1,830 to $1,940.
In contrast, Bitcoin's Premium Index has remained below 0.055% since October 20. This suggests that US-based crypto whales trading on Coinbase Pro have intensified their buying interest in ETH, reaching a 90-day peak, while the enthusiasm for BTC has somewhat waned since Thursday. This shift indicates a growing inclination among major investors to explore opportunities beyond Bitcoin in the altcoin market.
The Next Target for Ethereum Price: $1,700.
Ethereum (ETH) is presently trading at $1,630, and a daily timeframe technical analysis indicates a growing bullish trend. The immediate resistance level is situated at the Pivot High of $1,751. If the bullish momentum persists, Ethereum might face resistance at this point. A convincing breakthrough above this level could pave the way for further price increases.
Should there be a substantial surge in bullish activity, the next higher resistance level is approximately $1,850, a level with historical significance that could potentially trigger a strong bullish rally if breached.
With the current upward momentum, Ethereum seems well-positioned for potential gains. However, in the event of an unexpected shift to bearish sentiment, savvy traders may want to monitor the Pivot Low at $1,521 for initial support. Below that, Ethereum could find more robust support around the $1,450 mark, which holds psychological significance in the market.
