Despite a brief sell-off, analysts maintain a bullish outlook, saying Ethereum is not yet done.
Ethereum (ETH) has staged a strong comeback against Bitcoin (BTC) today. The key ETH/BTC chart, as highlighted in CoinEdition’s analysis, has broken a long-term downtrend after a massive 48% rally.
Notably, Ethereum had broken its all-time high, surging to nearly $5,000 on Sunday. ETH climbed to $4,950, surpassing its previous record of $4,867 set on November 8, 2021. This marks an important milestone for ETH as it enters a price discovery phase, where the asset reaches new highs without any resistance.
Ethereum’s comeback rally closely follows Bitcoin’s fall in dominance to 57.91%, down from around 63% just a month ago. While Ethereum hit a new peak Sunday evening, Bitcoin remained largely stable around $115,500 — an 8% drop from its all-time high of $124,500.
Analyst Miles Deutscher summarized the shift in market leadership succinctly, stating that “BTC is exhausted, and ETH isn’t.”
In other words, while Bitcoin’s rally has stalled near recent highs, Ethereum is just beginning its momentum surge into uncharted territory.
Related: Ethereum Leads a Market-Wide Rally After Powell’s “Dovish” Jackson Hole Speech
This setup mirrors conditions in past market cycles where Ethereum’s strength marked the beginning of altcoin season.
Analysts point out this breakout confirms earlier projections that Ethereum could take the lead in driving the next wave of capital flows across the crypto market. However, a massive sell-off followed shortly after Ethereum’s surge. The price of ETH crashed back to $4,607 just hours after surpassing $4,950, amid profit-taking pressure.
While this pullback has triggered some concerns, analysts like Ali Martinez believe Ethereum is far from finished.
This bullish sentiment is further reinforced by new data from Lookonchain, which shows that whales are increasingly taking long positions on Ethereum.
In a tweet, Lookonchain revealed that whale “0x31F9” deposited $15.47 million in USDC to the Hyperliquid platform to long Bitcoin and buy Ethereum. A follow-up post revealed another whale, “0x4174,” deposited $5.45 million to the same platform to long Ethereum with 20x leverage.
Widely followed trader Machi Big Brother is also reportedly long on Ethereum with 25x leverage.
Notably, many believe Ethereum is on track to break the $10,000 level this year. Industry leaders like Tom Lee have set even higher targets, forecasting ETH to hit $15,000 by the end of December.
The bullish outlook for Ethereum is further fueled by institutional interest. Companies are now buying ETH en masse to establish treasuries, similar to the earlier trend with Bitcoin.
Firms leading this initiative include Bitmine Immersion Tech with $7 billion in ETH investment. Sharplink Gaming also has $3.43 billion in ETH, while The Ether Machine has $1.6 billion in ETH.
