Ethereum (ETH) has surged 5% in the past 24 hours, breaking through the $3,500 mark and reaching its highest level in four months. The rally comes as Bitcoin consolidates around $98,500, shifting market attention to the second-largest cryptocurrency.
The strong price movement has triggered positive momentum across other alternative cryptocurrencies, with XRP, Cardano, and Avalanche all posting notable gains. Trading data shows Ethereum futures open interest has reached unprecedented levels, nearly doubling since the recent election results.
According to K33's Head of Research Velte Lunde, Ethereum futures premiums have surpassed Bitcoin's in recent days, indicating a shift in trader sentiment. The cryptocurrency had previously underperformed during the market rally following Donald Trump's victory, but has since bounced back with a 14% increase over the past week.
On-chain analyst Maartum reports a positive shift in Ethereum flows, with net inflows exceeding 10,000 ETH. The data shows 115,000 ETH deposited versus 105,000 ETH withdrawn, marking a reversal from months of consistent outflows.
Market analysts are increasingly bullish on Ethereum's prospects, with some targeting $4,000 as the next key level. More optimistic predictions suggest potential growth to $6,500 by the end of Q2 2025. Crypto analyst Michael van de Poppe suggests that breaking the 0.036 level against Bitcoin could pave the way for an ambitious $10,000 target.
Recent data from Coinglass reveals Ethereum open interest has increased by 5.74% to $21.73 billion, while 24-hour liquidations reached $47.5 million, split almost evenly between short and long positions.
The current market dynamics and technical indicators point to growing institutional interest in Ethereum, as the cryptocurrency continues its upward trajectory in the broader crypto market rally.