Crypto degens today woke up with smiles on their faces.
The cryptocurrency market is rallying again, with total market capitalization climbing to an unprecedented $4.2 trillion, according to data from CoinGecko. That’s a 3% jump in just the last 24 hours and a new record high for crypto.
Naturally, trading volume exploded, climbing 25.73% to $239.35 billion, signaling renewed investor appetite across the board. Even Monero, which tanked yesterday on fears of a 51% network attack, is in the green today.
Bitcoin is, as usual, leading the way, once again rising above $120,000. But it’s altcoins stealing the show today. The Altcoin Season Index on CoinMarketCap has risen to 39, up from 29 last month, which suggests an early-stage rotation into alternative cryptocurrencies as Bitcoin dominance wanes. What are traders rotating into you ask? Within the top 10, it’s Ethereum, Solana, and Cardano showing strong signals.
Ethereum, which had previously lost a great deal of momentum following its 2021 peak, is now back in the spotlight as the “public company crypto treasury” craze spreads to ETH.
Massive buys from publicly traded companies like the Consensys-linked Sharplink and Tom Lee’s BitMine have buoyed Ethereum prices. ETH is up a whopping 6% today, just shy of its 2021 all-time high above $4,800.
On Myriad — a prediction market developed by Decrypt’s parent company Dastan — predictors are confident that ETH has the strength to top $5K this year. Just last week, the odds were even, but sentiment on Myriad has flipped resoundingly bullish. Users are now placing the odds at 87% that Ethereum hits $5,000 before the end of the year.
A separate market on Myriad shows traders are widely expecting ETH to hit $5K before dipping all the way back down to $3,500 this year, placing those odds at nearly 80%.
Do the charts agree? At the moment, the second-largest cryptocurrency by market cap is demonstrating remarkable strength across multiple technical indicators.
The Average Directional Index, or ADX, for ETH is at 46, which confirms an exceptionally strong uptrend. ADX measures trend strength on a scale from 0 to 100, where readings above 25 indicate a confirmed trend, and above 40 signals powerful directional momentum. At 46, ETH’s uptrend has serious conviction.
Ethereum’s exponential moving averages also paint a bullish picture. EMAs take the average price of an asset over a set period of time. ETH’s 50-day and 200-day EMAs are currently providing dynamic support well below current prices. This expanding gap between short and long-term moving averages, known as bullish divergence, typically occurs in strong uptrends and gives buyers multiple support levels during any pullbacks. Traders see this setup as a green light for trend-following strategies, and the bigger the spike gets, the more momentum the trend has.
