Ethereum (ETH) is showing a promising price movement that echoes a bullish setup seen in Bitcoin (BTC) before its record-breaking rally. Supported by increased network activity and significant spot ETF inflows, Ether’s outlook appears increasingly favorable.
Ether’s Chart Reveals a Bullish Breakout
Ethereum’s three-line break chart—a technical tool that removes short-term price fluctuations—has revealed a bullish reversal. This shift marks the end of an eight-month corrective phase, during which ETH faced consistent lower highs and lower lows. Now, ETH has resumed its broader uptrend that began in October 2023, when prices hovered near $1,500.
- Such breakouts often lead to strong price surges as new buyers step in and previous sellers exit the market, allowing upward momentum to build.
- Notably, Bitcoin displayed an identical pattern in mid-October, which signaled its rally to record highs above $73,000. Since then, BTC has gained 45%, surpassing $96,000.
While chart signals are not always foolproof, this bullish setup is further supported by Ethereum’s growing network strength and rising institutional interest.
Ethereum Network Activity Supports Bullish Case
Ether’s recent price momentum is not just a result of technical factors—it is backed by significant growth in Ethereum network activity and fundamentals.
1. Surge in Layer-2 “Blob” Transactions
Ethereum’s layer-2 protocols witnessed a sharp increase in “blob” submissions throughout November. These blobs are data packets posted on the main Ethereum blockchain and require fluctuating fees paid in ETH.
- Importantly, these fees are burned, permanently reducing Ethereum’s circulating supply.
- This deflationary effect creates a scenario where ETH becomes scarcer over time, which can drive prices higher if demand continues to grow.
2. Record-Breaking Spot ETF Inflows
Investor confidence in Ethereum is reaching new highs. On Friday, U.S.-listed spot ETH ETFs recorded their largest daily inflow to date: $332.9 million, according to Farside Investors.
- This milestone highlights the increasing interest from institutional investors who view Ethereum as a key asset for their portfolios.
Similarities to Bitcoin’s Rally: Could ETH Be Next?
Ethereum’s current situation bears a striking resemblance to Bitcoin’s rally trajectory from October. BTC’s bullish breakout quickly attracted widespread attention, pushing prices to unprecedented levels.
ETH is now displaying similar characteristics:
- A confirmed bullish breakout on the charts.
- Increasing institutional capital flowing into Ethereum ETFs.
- Rising network activity and a reduction in supply due to fee burns.
Many analysts suggest that Ether is now primed to act as the “catch-up trade” of this cycle, mirroring Bitcoin’s prior movements.
Final Thoughts: Ethereum Poised for Growth
Ethereum’s combination of technical bullish signals and improving network fundamentals presents a strong case for upward momentum. The breakout on the three-line break chart, combined with record ETF inflows and growing network usage, paints an optimistic picture for ETH’s price trajectory.
As Ethereum mirrors patterns that preceded Bitcoin’s rally, investors are increasingly optimistic about the cryptocurrency’s next big move. If current trends persist, ETH could be on the verge of a significant surge, reinforcing its position as one of the most influential assets in the crypto market.
