Ethereum Surges 16%, Outperforms Market

• Ethereum is currently outperforming other major cryptocurrencies since the Federal Reserve reduced rates.
• The leading altcoin’s 16% surge follows a period of underperformance compared to Bitcoin and Solana.
• Ethereum has exceeded the $2,595 resistance point, with traders now eyeing the $2,817 key level.

Ethereum (ETH) has posted a remarkable 16% growth over the past week, marking a significant turnaround. This surge follows the Federal Reserve’s decision to cut rates by 50 basis points, a move that seems to have provided a much-needed boost to the cryptocurrency market. As of Monday, Ethereum is close to reclaiming a crucial support level at $2,817.

Daily Update: Ethereum’s Performance and Open Interest Surge

Since the recent rate cut, Ethereum has demonstrated strong performance against Bitcoin and other top 20 cryptocurrencies by market capitalization. With a 16% increase in just five days, Ethereum’s gains have outpaced Bitcoin’s 7% and Solana’s 10%. Additionally, Ethereum’s open interest (OI) has seen a steady rise, reaching $12.37 billion, per Coinglass data. This resurgence in open interest aligns with Ethereum’s growing price, indicating heightened investor confidence in the asset.

Ethereum Open Interest

Ethereum’s recent performance is particularly notable given its previous underperformance relative to Bitcoin and Solana. The ETH/BTC ratio had hit lows not seen since April 2021. Analysts at Bitfinex attribute this reversal to the prolonged undervaluation and declining open interest observed in the altcoin market since March 2024. They also caution that increasing open interest might bring more volatility to Ethereum’s market.

Interestingly, Ethereum exchange-traded fund (ETF) activity has shown mixed signals. CoinShares data revealed net outflows of $28.5 million last week, although the week concluded with modest inflows.

Ethereum Sets Sights on $2,817 Amidst Strong Upward Momentum

Trading around $2,670 as of Monday, Ethereum has seen a 3.7% daily gain. Within the last 24 hours, the market has experienced significant liquidations, totaling over $37 million, with $16.06 million in long positions and $21.39 million in short positions. On the 4-hour chart, Ethereum breached the $2,595 resistance this past weekend, aiming for the critical $2,817 price level.

Ethereum/USDT 4-hour chart

If Ethereum successfully clears the $2,817 resistance, it could bolster bullish momentum and aim for the $3,000 psychological barrier, further targeting the $3,057 resistance. However, failure to maintain above $2,595 may result in a correction towards the $2,395 support level.

The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) indicate that they are moving out of the oversold region, suggesting a potential correction. In the short term, Ethereum might rise to $2,706, triggering liquidations worth $56.35 million.

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