Ethereum is demonstrating significant resilience, attracting substantial capital inflows from Bitcoin and other assets as investors diversify holdings amid broader crypto market volatility.
The cryptocurrency surged 3.56% in the last 24 hours, reaching a price of $3,982.44. This upward movement is largely attributed to a strategic shift of investment capital from Bitcoin to Ethereum during the third quarter, according to recent reports.
Ethereum’s daily trading volume stood at $32.42 billion, contributing to a robust market capitalization of $468.96 billion. Despite a weekly return of -3.76%, the recent rebound signals renewed investor interest.
Analysts note that large holders, often referred to as “whales,” have been accumulating Ethereum during recent price dips. Significant outflows from exchanges further indicate a strong conviction among long-term holders.
This capital migration reflects Ethereum’s growing appeal in decentralized finance (DeFi), alternative cryptocurrencies (altcoins), and tokenized assets, while Bitcoin’s momentum cooled.
On-chain metrics underscore this trend, showing an increase in daily transactions, surpassing 1 million in the last 24 hours. Funding rates for perpetual contracts remain positive at 0.01%, suggesting a moderate bullish outlook.
Open interest in Ethereum futures has climbed to $15 billion, a 5% increase from the weekly average. This indicates heightened institutional participation in the asset.
No major negative events, such as hacks or new regulations, have been reported in the past 24 hours. A stable macroeconomic environment, including steady interest rates from the U.S. Federal Reserve, also supports investor appetite for risk assets.
Technically, the price is nearing key resistance levels. It has broken past $3,900, supported by a 41% increase in trading volume compared to the previous day.
The Relative Strength Index (RSI) is currently at 55, indicating a neutral position as it exits an oversold zone from the previous week. The Moving Average Convergence Divergence (MACD) line is above its signal line, confirming a rebound.
Key support levels are identified at $3,850 and $3,700. Resistance levels are seen at $4,000 and $4,200.
Ethereum’s fundamentals remain strong, with its total value locked in DeFi exceeding $100 billion. This significantly outperforms competitors like Solana, which holds approximately $5 billion in TVL.
The platform also leads in daily transactions, recording 1 million compared to 500,000 for Binance Coin (BNB). Layer-2 solutions, such as Arbitrum, have integrated with Ethereum, enhancing its scalability.
Approximately 28% of Ethereum’s supply is actively staked, generating stable yields for participants. The asset currently trades at 0.08 times its all-time high of $4,948.08, suggesting it may be undervalued compared to Bitcoin, which trades at 0.6 times its peak.
Market sentiment on social media platforms is leaning positive, with about 60% of discussions reflecting optimism. Ethereum currently holds a moderate bullish bias, with an annual expected volatility of 40%.