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Ethereum has been mirroring Bitcoin’s price performance this week.
The cryptocurrency rallied to the $2,900 zone on 6 November for the first time since August.
The Ethereum ETF landscape has also been impressive lately, with massive inflows from institutional investors.
Analysts are now calling for a rally towards $5,000 and even $8,000.
Ethereum is heating, in and out of the charts.
Analysts worldwide now see Bitcoin's greatest competitor as "undervalued" and poised for substantial gains.
This mainly happened over the last 24 hours, when the cryptocurrency jumped by more than 10% to as high as $2,900.
Let's see how Ethereum has climbed by around 25% over most of 2024 and how analysts believe this is the beginning of a so-called "monster rally" soon.
Despite already seeing gains, Ethereum still has some fuel left over after Bitcoin's surge to a new all-time high on 4 November.
Between then and now, on 6 November, the cryptocurrency reached $2,846—a level it hasn't seen since August.
While some analysts are surprised by this turn of events, others believe the real surge is only just beginning.
According to analyst Miles Deutscher in a recent Twitter post, Ethereum is now "outperforming BTC and SOL" over the previous 24 hours.
This indicates that Ethereum’s momentum might indeed just be starting.
Ethereum has also been climbing relative to Bitcoin, according to the ETH/BTC charts.
As of 6 November, Ethereum saw a near 6% bounce against Bitcoin to a ratio of 0.038—all the way down from a multi-year low of 0.03496.
For investors, when the ETH/BTC ratio rises, it is often regarded as a buy signal.
Judging by this, Ethereum could be ready to gain traction in the future.
The bullish sentiment around Ethereum is also rising, with analysts predicting a surge.
According to pseudonymous trader Byzantine General in a 6 November post, Ethereum is primed for a massive rally.
Ready for a massive rally
Another analyst, Dan Tapiero, the founder of 10T Holdings, believes Ethereum is "too cheap."
Tapiero also believes the cryptocurrency could break above the $8,000 mark over the next year.
This optimism is backed by Tapiero’s belief that large-scale adoption and institutional interest could be the key to this "monster rally."
Ethereum versus Bitcoin
Benjamin Cowen weighed in on the conversation as well.
According to the analyst, if the ETH/BTC ratio can rise above its 50-day SMA, we could see a bottom for the ETH/BTC pair.
Alongside the growing interest from retail traders, Ethereum is catching the eye of institutional investors.
For example, the State of Michigan Retirement System recently revealed in a filing that it holds 460,000 shares each in Grayscale’s Ethereum Trust and Ethereum Mini Trust.
This is one of the biggest signals that institutional players are looking towards Ethereum as a long-term asset.
In the ETF space, the spot Ethereum ETFs have also seen strong upticks in inflows.
Farside data shows that on 6 November, the market saw net inflows of $52.3 million.
Health in the ETF sector
This is the highest the sector has seen in six weeks.
Fidelity’s Ethereum Fund even led the charge with $26.9 million in inflows, followed by Grayscale’s Ethereum Mini Trust with $25.4 million.
This spike in inflows is a major bullish sign of investor interest in Ethereum—despite competition from the spot Bitcoin ETFs.
Bitcoin has been making headlines with its recent climb above $76,000.
This surge alone pushed the total crypto market cap to an impressive $2.64 trillion. It has also set a strong foundation for the rest of the crypto market—the same foundation from which Ethereum is currently benefiting.
As Bitcoin rallies, it often pulls the rest of the market up with it. This helps Ethereum and the rest of the altcoin market to establish upward trends.
Strong inflows on Bitcoin
Farside data shows that the Bitcoin ETF market saw $621.9 million in net inflows on 6 November.
More than half a billion in inflows allowed it to reverse its previous three days of outflows.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) was the biggest contributor, with $308.8 million in inflows—its highest since June.
While the outlook for Ethereum is promising, the road to these milestones will not be without obstacles.
For example, Dan Tapiero, in a recent tweet, mentioned that Ethereum is on its way towards the $8,000 mark.
While this is impressive enough, such a price target for the cryptocurrency would require stronger investor interest.
It would also require things like better technical performance and more adoption from institutions.
Additionally, Ethereum has been getting more competitors lately, with other projects like Solana and Sui attempting to chip away at its market share.
Overall, Ethereum's strong branding and proven track record make It a major candidate for further growth.
Can Ethereum hit the $8,000 mark as predicted? Only time will tell.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.