Ethereum (ETH) has seen a significant rally over the past week, with its price increasing by 18.7% between Sept. 17 and Sept. 23, outperforming Bitcoin in terms of weekly gains. Key indicators like open interest, funding rates, and network growth suggest strong demand for Ether, fueling speculation about a potential recovery to the $3,000 price level.
Ether Rallies While Bitcoin Lags
According to data from Cointelegraph Markets Pro and TradingView, Ether’s price is currently up 4% over the past 24 hours, trading at $2,650. In contrast, Bitcoin is trading at $63,678, marking a 1.8% increase during the same period. Overall, the total crypto market capitalization has grown by 2% to $2.3 trillion.
Ether’s 17.5% increase over the last week highlights its strength compared to Bitcoin, which rose by 9.8% over the same period. The ETH/BTC ratio has also surged by approximately 7.5% within the past week, reaching a three-week high of 0.0424 on Sept. 23. This surge indicates increasing demand for Ether relative to Bitcoin.
Positive Sentiment in Ethereum ETFs Despite Broader Outflows
Investor sentiment around Ether appears to be shifting, as inflows into US-based Ethereum exchange-traded funds (ETFs) turned positive last week. Minor inflows of $5.2 million and $2.9 million were recorded on Sept. 19 and 20, respectively. However, Ether has still experienced net outflows from investment products, with a total of $29 million in outflows between Sept. 16 and 20, according to CoinShares.
James Butterfill, head of research at CoinShares, attributed these outflows to persistent sell-offs from the Grayscale Ethereum Trust and limited inflows into the newer Ethereum ETFs. Despite these outflows, Ether’s recent performance against Bitcoin suggests growing investor confidence.
Bitcoin Dominance Weakens as Ether Shines
A notable trend in the crypto market is the decreasing dominance of Bitcoin. Since Sept. 19, Bitcoin’s market share has fallen from 58.7% to 57.4% by Sept. 23. This drop signals a shift in investor sentiment, with more capital flowing into altcoins like Ether. As Bitcoin dominance continues to decrease, Ether’s strength in the market is expected to grow further, especially as the ETH/BTC ratio rises.
Ethereum’s Network Growth Signals Higher Demand
Ethereum’s network activity has been on the rise, further reinforcing the bullish case for ETH. Increased transactions and decentralized application (DApp) activity indicate growing usage of the Ethereum blockchain. Over the past 24 hours, data from DappRadar shows a 1.42% decline in unique active wallets interacting with Ethereum DApps, but a notable 21.92% increase in volume. Furthermore, Ethereum DApp transactions have risen by 6.5%, led by platforms like Uniswap, Balancer, ParaSwap, and Aave.
Data from DeFiLlama also supports Ethereum’s bullish outlook, with the total value locked (TVL) on the network rising from $44.1 billion on Sept. 18 to $49.65 billion on Sept. 23. The increase in TVL reflects growing user activity on Ethereum and points to rising demand for Ether as a result.
Positive Outlook for Ether as It Holds Key Support
Key metrics such as open interest-weighted funding rates have flipped positive for Ether since Sept. 16, currently standing at $0.0072%. This positive funding rate signals increased demand for leveraged long positions, further indicating a bullish sentiment toward Ether.
As long as Ethereum continues to see strong network activity, rising TVL, and increased DApp usage, it is likely that ETH will maintain its current support level of $2,600. A sustained demand for Ether could propel the asset closer to the $3,000 mark in the near future.
Conclusion
Ethereum’s strong weekly performance, combined with increasing demand across key metrics, suggests that a recovery to $3,000 could be in sight. With Bitcoin dominance falling and Ethereum’s network continuing to grow, investors remain bullish on the future of ETH. The next few weeks will be critical in determining whether Ether can sustain its upward momentum and break through key resistance levels.
