Ethereum and Bitcoin are showing significant growth, approaching their historical highs. Analysis of the factors driving this rise indicates potential changes in the cryptocurrency market.
Ethereum Breaks Key Technical Barrier
Ethereum is trading at $4,689.99, nearing its record of $4,867 set in November 2021, after a 29.49% gain over the past week. Analysts point to strong institutional inflows and a sharp rotation from Bitcoin dominance into Ethereum and other altcoins as key factors fueling this rally.
Bitcoin Holds Ground and Eyes New High
Bitcoin is trading at $120,629.99, carefully approaching its peak of $122,980 following a solid 5.52% weekly advance. Analyst Michaël van de Poppe notes that the market has avoided a breakdown and reclaimed critical resistance levels. This resilience is keeping bullish sentiment alive among traders.
Bitcoin Dominance Drops as Altcoins Rally
Bitcoin dominance has also taken a hit, confirming a breakdown from its long-term trend. This shift could signal a broader altcoin rally, with Ethereum positioned as the primary beneficiary given its strong technical structure and investor momentum.
If current trends persist, the cryptocurrency market could enter a historic phase where both leading assets surpass their previous records almost in unison. However, abrupt changes in macroeconomic conditions might trigger temporary pullbacks. Optimism remains high, with technical setups pointing to fresh highs in the coming weeks.
