Ether (ETH) is approaching the $2,900 mark, and traders are increasingly optimistic about its potential for a significant upward movement. Many market participants believe the asset remains "too cheap" at current levels and is primed for what some are calling a "monster rally."
Since the beginning of 2024, Ethereum has already gained nearly 25%, yet analysts argue that it remains undervalued—especially after Bitcoin’s recent breakthrough to a new all-time high. This positive sentiment is fueling expectations that Ethereum could soon experience a substantial surge.
Analysts See More Upside for Ethereum
According to data from TradingView, Ethereum rose 9.66% since November 6, reaching a price of $2,846. This marks the first time since August that ETH has broken above the $2,800 resistance level. The rapid price movement has taken some traders by surprise.
Miles Deutscher, a well-known cryptocurrency analyst, described the move as "unfathomable," noting that ETH had outperformed both Bitcoin and Solana over a 24-hour period.
Ethereum’s year-to-date high remains the $4,066 level reached back in March.
Meanwhile, Benjamin Cowen, another popular crypto analyst, suggested to his 876,700 followers on X that Ethereum may have bottomed out relative to Bitcoin. Cowen stated that if the ETH/BTC ratio manages to climb above its simple moving average (SMA), it is "very likely" that the ratio has already found a bottom.
On November 6, the ETH/BTC ratio bounced 5.36% from the previous day, reaching 0.038. This recovery came after the ratio had previously touched what was described as a "multi-year low" of 0.03496.
Whenever the Ethereum-to-Bitcoin ratio reaches levels perceived as oversold, traders begin speculating about a potential rally. Many see it as a strategic buying opportunity.
One trader, using the handle Ryandcrypto, commented that Ethereum "reaching $5,000 would be the most hated rally in history."
Ethereum Is "Too Cheap," Says Prominent Investor
Dan Tapiero, founder of 10T Holdings and a vocal proponent of a $100,000 Bitcoin, also expressed strong confidence in Ethereum. He stated that ETH is "too cheap" at current valuations.
In a post on X dated November 6, Tapiero proclaimed, "Ethereum will explode from here," adding that he expects the asset to surpass $8,000 by next year.
Alongside growing bullish sentiment, there are tangible signs of increasing institutional adoption. On November 4, it was reported that the Michigan Retirement System had increased its investment in Ethereum-based exchange-traded funds (ETFs).
In a filing with the U.S. Securities and Exchange Commission (SEC), the pension fund disclosed holdings of 460,000 shares of the Grayscale Ethereum Trust and an additional 460,000 shares of Grayscale’s Ethereum Mini Trust.
This move is seen as a significant endorsement from a traditional institutional investor, potentially paving the way for further adoption.
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Why Ethereum Could Be Poised for Growth
Several factors contribute to the optimistic outlook for Ethereum:
- Network Upgrades: The continued evolution of the Ethereum network, including improvements in scalability and security, enhances its utility and value.
- Institutional Interest: Growing investment from pension funds, ETFs, and corporate entities signals increasing legitimacy and demand.
- Market Cycle Position: Many analysts believe that Ethereum is still in the early phases of a broader bull market, especially following Bitcoin’s record-breaking performance.
These elements combine to create a favorable environment for Ethereum’s price appreciation.
Frequently Asked Questions
What is driving the current rise in Ethereum’s price?
The recent price increase is fueled by a combination of technical bullish signals, institutional investment inflows, and overall positive sentiment in the cryptocurrency market following Bitcoin’s new all-time high.
How high can Ethereum realistically go in the near term?
While predictions vary, several analysts suggest short-term targets between $3,500 and $4,000. Long-term forecasts from influential figures like Dan Tapiero exceed $8,000.
Is now a good time to invest in Ethereum?
Many traders believe Ethereum is still undervalued relative to Bitcoin and other major cryptocurrencies. However, as with any investment, it’s essential to conduct personal research and consider market risks.
What are the main risks associated with investing in Ethereum?
Key risks include market volatility, regulatory changes, technological challenges, and broader economic factors that can affect cryptocurrency valuations.
How does institutional investment affect Ethereum’s price?
Institutional involvement typically increases liquidity, reduces volatility, and adds credibility—all of which can contribute to long-term price stability and growth.
What role does the ETH/BTC ratio play in trader decisions?
The ETH/BTC ratio is closely watched as an indicator of relative strength between the two largest cryptocurrencies. A low ratio often leads traders to anticipate a mean-reversion rally in Ethereum.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.