Ethereum (ETH) is capturing market attention with signals of a potential breakout reminiscent of Bitcoin’s historic 2021 bull run. Analysts cite a combination of strong technical indicators, increasing ETF inflows, and intensified whale accumulation as key reasons Ethereum could soon outperform Bitcoin.
ETH recently broke out of a classic falling wedge pattern, a technical setup often linked to trend reversals. This bullish formation, combined with multiple Relative Strength Index (RSI) taps, suggests Ethereum may be poised for a significant upward move.
The RSI behavior mirrors Bitcoin’s movements in early 2021, before it surged to record highs. Adding to the bullish narrative, Ethereum’s RSI has tapped its long-term trendline three times, a rare pattern seen during market bottoms and major trend shifts.
This ETF demand marks a strong signal of growing confidence among professional investors. On-chain data also reveals a 40% surge in Ethereum ETF holdings over the last month, a vertical trajectory that underscores rapid institutional adoption.
Whales are also aggressively accumulating. More than 200 new whale addresses have been added since early July. Notably, one address reportedly purchased $300 million worth of Ether via OTC deals through Galaxy Digital.
Supported by favorable technical indicators, increased institutional investments, and substantial holder confidence, ETH appears well-placed to potentially outperform Bitcoin in the coming months.
As market participants anticipate the next upward movement, Ethereum may be poised to challenge Bitcoin’s prevailing market dominance.
Cover image from ChatGPT, ETHUSD chart from Tradingview
