Ethereum (ETH) Price Surge: A New Rally?
Key Points
Ethereum [ETH] is exhibiting signs of a potential breakout, indicating a possible shift in market dynamics. While Bitcoin [BTC] shows stability but weakening momentum, ETH is gaining strength across various timeframes. The Merge has reshaped Ethereum's supply dynamics, potentially ushering in a new bullish phase.
Ethereum vs. Bitcoin: Diverging Momentum
Recent data highlights a divergence between ETH and BTC. Bitcoin's momentum has been weakening since 2024, with short-term buying pressure not matching long-term demand. In contrast, Ethereum has broken out of a period of weakness, with momentum surging in recent months, suggesting a new cycle of strength.
Positive momentum values indicate alignment across timeframes, a characteristic currently more pronounced in ETH than BTC.
Visualizing the Shift
Charts show Bitcoin's weakening buying pressure versus Ethereum's surging momentum.
Ethereum's Post-Merge Landscape
Beyond momentum, a significant structural shift has occurred following the Merge. Before the Merge, Ethereum's price correlated with mining difficulty. Higher difficulty meant more miners, increased security, and often higher prices. Since transitioning to Proof-of-Stake (PoS) in 2022, mining has ceased, and network difficulty has dropped to zero.
This transition eliminated miner-driven sell pressure and introduced new deflationary dynamics. Staking reduces the circulating supply, while EIP-1559 continues to burn transaction fees, increasing scarcity.
With ETH trading above $4,300, the key question is whether it can surpass its all-time high of $4,800.
Rebound Indicators
At the time of writing, ETH traded around $4,380, gaining approximately 1.7% on the day. The chart shows ETH holding above $4.3K, with recent candles indicating a possible shift in momentum.
Technical Analysis
- RSI: Neutral-to-slightly bullish sentiment
- MACD: Bearish territory, showing early signs of convergence
Ethereum may be in the early stages of recovery. A push above $4.4K could bolster confidence, while failure to hold above $4.3K might trigger selling pressure.