- Ethereum, the second largest cryptocurrency by market capitalization overshadowed Bitcoin and Dogecoin, yielded 10.4% gains overnight.
- Analysts have predicted a correction in Ethereum price before the altcoin’s climb to the $1,600 level.
- The flippening narrative, where Ethereum’s market capitalization exceeds that of Bitcoin became relevant yet again, proponents wait for ETH’s big move.
Ethereum price yielded nearly 13% gains overnight for holders, leaving Bitcoin, Dogecoin and other altcoins to bite the dust. Analysts believe the narrative of Ethereum’s market capitalization exceeding that of Bitcoin has become relevant. Proponents are waiting for Ethereum’s big move as the altcoin prepares to flip Bitcoin.
Flippening on the horizon as Ethereum outperforms Bitcoin in massive rally
Bitcoin’s price volatility hit historical lows over the past week. The largest asset by market capitalization bit the dust as competitor altcoin Ethereum yielded massive overnight gains for holders. Ethereum price briefly touched the $1,500 level on October 26, and the second-largest cryptocurrency is up 18.4% over the past week.
Proponents have attributed Ethereum’s bounce to broader market circumstances. US stock market indices have recovered, for the third day in a row there is growth in the S&P 500 and Nasdaq. Since the crypto market enjoys a high correlation with the US stock market, Ethereum’s recovery is considered related to the same.
Open interest for Ethereum surged dramatically on October 25. Open interest is defined as the amount of open positions (including both long and short positions) currently on a derivative exchange’s ETH-USD trading pairs. It is considered a key indicator for Ethereum price trend.
Another key factor in Ethereum’s price rally is the altcoin’s supply. Based on data from the platform Ultrasound money, Ethereum’s total supply has increased by 13,086 tokens in 23 days. With rising on-chain activity and Ethereum’s monetary policy becoming deflationary, the altcoin’s total supply is closer to what it used to be on September 15.
Analysts predict correction before Ethereum’s price hits $1,600
Michaël van de Poppe, crypto analyst and trader believes Ethereum is prepared to make a massive move. The analyst was quoted as saying:
Great flip of $1,320 inducing continuation towards $1,500. [Ethereum] will flip [Bitcoin] this cycle, but now it’s not the time to chase. Looking for some healthy corrections to play the next move to $1,600.
The analyst has predicted Ethereum price rally to the $1,600 level post a correction in the altcoin.
Markets are looking ready for consolidation and short-term correction.
Massive reaction upwards, as #Ethereum has been running from $1,300 to $1,600.
Therefore, some lower timeframe bearish divergences are in play, likely short-term correction and continuation.
Relief is here.
— Michaël van de Poppe (@CryptoMichNL) October 26, 2022