In a change, Ethereum (ETH) has outpaced Solana (SOL) over the past 24 hours, leading some experts to believe a “massive capital rotation” is underway.
Ram Ahluwalia, CEO of cryptocurrency investment firm Lumida, is among those optimistic about Ethereum’s prospects. The CEO chose X on December 28th. said The ‘great cycle’, which means capital injection, has begun. The coin could be poised to hit all-time highs above $5,000 in the coming weeks and months.
Ethereum has surpassed Solana in the last 24 hours
Ethereum’s resurgence comes at a time when Solana appears to be cooling off after a sharp rise over the past few trading months. While ETH is up about 5%, Ahluwalia points out that SOL has fallen by a margin over the last 24 hours. This formation is reflected on the SOLETH chart, but SOL bulls remain ahead of ETH in the top-down preview.
Ahluwalia’s optimism and expectations for ETH’s expanding gains stem from Ethereum’s recent price action. The coin broke out of the intermittent resistance level. Now, if you look at the shape of the daily chart, it is poised for a higher rally. ETH is currently at a circa December 2023 high, which is a cooler period than earlier today when the price hit a new 2023 high above $2,400.
Looking at the ETH candlestick arrangement in particular, it is clear that buyers have the upper hand. The uptrend observed today is primarily due to the volume surge on December 27th. A surge in trading volume suggests trader interest. This could fuel more demand and form the basis for ETH to soar to $3,500 and even $5,000 in future sessions.
As for what is happening now on the price side, Ahluwalia said traders should expect big moves, especially in the lower periods. According to the CEO, ETH will “teleport” as it soars higher and hits new all-time highs in 2024.
Will Dencun and talk of a spot Ethereum ETF push ETH to new highs?
This bullish momentum can be attributed to several factors, including network improvements and hopes that the U.S. Securities and Exchange Commission (SEC) will approve a spot Ethereum ETF. So far, the cryptocurrency community is expecting regulators to approve the first Bitcoin ETF in early 2024. When this happens, the focus will shift to ETH and likely determine whether the SEC will approve similar products following approval. 2023 Ethereum Futures ETF.
Ethereum plans to release the Dencun upgrade from Goerli in mid-January 2024. Implementation will occur after the community has thoroughly tested all proposals. However, Dencun is an important update that improves scalability, performance, and security. This upgrade also launches Proto-dank sharding, which will see mainnet scale.
Featured image from Canva, chart from TradingView