According to Lewis Harland, portfolio manager at Decentral Park Capital, cash flow from bitcoin into the Ethereum market has contributed significantly to today’s price.
After the consolidation of the last two weeks, Ethereum (ETH) market has started to gain traction Bitcoin (BTC) during the early New York trading session on Tuesday. According to the latest crypto market data, the price of Ethereum gained more than 3 percent during the day to reach a 24-hour high of around $1,886. With over $30 billion at stake in the Ethereum ecosystem, DeFi The ecosystem is currently focused on the upcoming Shanghai upgrade, which is scheduled for April 12th. Specifically, the Ethereum Shanghai upgrade will enable the withdrawal of over 17.9 million Ether by over 561k validators.
Bitcoin market dominance declined by about 0.2 percent on Tuesday, following Ethereum’s recent breakout. While bitcoin has a market dominance of around 47 percent, according to TradingView, Ethereum’s share is around 19 percent. However their dominance is expected to wane as more altcoins show signs of decoupling led by Dogecoin.
According to market data provided by CoinGlass, over $12 million has been liquidated from the Ethereum market in the past few hours following the sudden breakout. Furthermore, the breakout has surprised many traders who expected the price to decline before continuing the bull rally.
Analyst Take on Ethereum (ETH) Market Outlook
According to Lewis Harland, portfolio manager at Decentral Park Capital, crypto cash flows have recently favored Ethereum against bitcoin. Nevertheless, crypto analysts are closely monitoring the Ethereum market to ensure that today’s spike is a true breakout towards $2000. Furthermore, the bounce in Ethereum price could be a false breakout, which could lead to stop-hunting for smaller traders.
$ETH: We haven’t seen a 4-hour close above $1850 since Aug 2022.
The EMAs all look quite healthy, lets see if this is indeed a true breakout. #ethereum pic.twitter.com/pivr6ppjlE
— Altcoin Sherpa (@AltcoinSherpa) April 4, 2023
The banking crisis has significantly affected the Ethereum market, according to Harland in a note to investors on Monday, which is a favorite among many institutional investors looking to tap into the DeFi ecosystem.
“ETH looks to regain ground against BTC as part of a broader capital rotation play, with the crypto likely to benefit from broader equity rallies in a historically bullish month,” Harland noted,
Nevertheless, the Ethereum ecosystem along with other altcoins faces harsh regulatory scrutiny in the United States after SEC Chairman Gary Gensler said that all digital assets apart from bitcoin are unregistered securities. According to Gensler, most crypto projects are not as decentralized as they say. Gensler told Congress that most crypto projects have people working on their success.
#ethereum Security category action is not https://t.co/EjsD0ZHwOG
— John E Deaton (@JohnEDeton1) March 10, 2023
In defense of Ethereum, renowned crypto attorney John E Deaton filed a class action lawsuit, claiming that Ether is not a security. Furthermore, all other altcoins are at risk of being classified as unregistered securities in the United States if Ether and XRP are grouped as such.
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