Why is Ethereum (ETH) price up today?
Ethereum's Ether token has surged approximately 3% in the past 24 hours, reaching about $3,430 on December 24, aligning with a broader upward trend in the altcoin market while Bitcoin's price consolidates around $94,000. This rise follows increased capital inflows into US-based spot Ethereum exchange-traded funds (ETFs), which saw inflows of $130.8 million, marking a significant recovery. Additionally, there has been a noticeable decline in Bitcoin's dominance in the market, falling by 1.84%, while Ethereum's market dominance increased by 2.65%. Historically, such movements often signal the onset of an altcoin season, wherein larger altcoins, like Ether, tend to outperform Bitcoin. Analysts suggest that we might be observing a similar pattern as seen in the 2021 market cycle, with potential further capital rotation into altcoins. Despite the bullish momentum, Ethereum's price still exhibits signs of consolidation within a bear pennant pattern, with critical resistance and support levels that could influence its future trajectory. A breakout above the upper trendline could target higher prices, while a close below the support could lead to declines.
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