The Ethereum price has set a new record over the weekend, gaining 10% to $3,960. JPMorgan outline why this may be the start.
The recent rally in Ethereum shows no signs of stopping just yet, and the coin continues to eat away at Bitcoin’s market share.
The 450% rally (so far) in The Ethereum price in 2021 now has the coin’s value at almost half a Trillion US Dollars. The number #2 ranked digital assets total valuation is now $448,000,000,000 and, according to JP Morgan, may be set to climb much higher.
Whilst Bitcoin has struggled to break new ground in the last 6 weeks, Ethereum has soared. ETH has outperformed BTC/USD by 4 times since the start of April.
Ethereum and others, including Dogecoin, have grabbed more than the headlines. They have also grabbed market share from Bitcoin.
Bitcoins’ failure to make news highs has seen its market share drop from 60% to just under 45%.
This reminds me of the market in late 2017/early 2018. Although for different reasons. Bitcoin’s decline in market share has less to do with a declining BTC price and all to do with a rising Ethereum price.
Institutional Investment Soars
A report by JP Morgan has outlined why Ethereum has and could continue to outperform Bitcoin. The report details how investors are embracing ETH at a growing pace.
In April, four new Ethereum ETFs’ were launched. This has made it easier for institutional investors to profit from the rising Ethereum price.
Open interest in the CME Ethereum futures surged in April. This indicates that Institutions bought more than $250 Million of Ethereum over the period.
I believe the current extension could see the Ethereum price test $5,000 level over the coming sessions.
The price has now cleared an ascending triangle formation, that had been building since the 3rd of May. This breakout level at $3,600 should now act as price support.
Often when the price breaks a trend line, it revisits that price before continuing the move. A pullback in price to the top of the formation would offer a better entry point for longs.
Longs may want to place stops beneath the lower end of the triangle at $3,480. A failure to hold this line may see the price slip to $3,300 and then $3,165.
ETH/USD Daily Chart
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