Over the past 24 hours, Bitcoin (BTC) has shown strong upward momentum, while Ethereum (ETH) also rose by 3.8%, climbing above $2,620. This demonstrates Ethereum's correlation with Bitcoin's price movements.
But the critical question remains: Is Ethereum's gain merely a passive follow-along as Bitcoin nears its all-time high? Or is ETH brewing its own independent rally?
Analyst Predicts ETH Could Reach $10,000 Within a Year
Renowned crypto market analyst DCinvestor made a bold prediction on social media, stating that ETH could reach much higher levels within the next year.
He argues that the true driving force won't be retail investors returning to the market, as they may have been "brainwashed" into doubting ETH's intrinsic value. DCinvestor explains: "Retail won't come back to ETH—they've been psychologically conditioned to believe it's worthless. But they'll watch helplessly as ETH climbs to $10,000, because institutions, governments, and Wall Street are pouring trillions into this chain."
Drawing parallels to Bitcoin's 2017 cycle, DCinvestor notes that ETH's development is about two cycles behind BTC but is progressing steadily. He emphasizes that new market entrants won't care about existing criticisms because they're unaware of the "old-school" skeptics.
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ETH ETF Inflows: A Clear Signal of Institutional Interest
The numbers don't lie. According to CoinShares' latest report, Ethereum-related investment products have led digital asset inflows for two consecutive weeks since May 16, attracting $296.4 million. This brings the seven-week total to $1.5 billion.
James Butterfill, CoinShares' Head of Research, noted: "This marks the strongest inflow since the U.S. elections," adding that it currently represents 10.5% of Ethereum's total managed assets.
Marcin Kazmierczak, COO and Co-founder of Redstone, highlights that ETH's upward momentum appears driven by multiple factors: renewed institutional interest in ETH ETFs and growing anticipation around Ethereum's roadmap upgrades.
Meanwhile, the ETH/BTC market cap ratio has risen above 0.14—a potential signal of shifting sentiment toward risk-on altcoins and possibly an early indicator of a broader altcoin season.
Pectra Upgrade Boosts Optimism
Despite ETH's relatively "flat" recent price action, its fundamentals remain strong. Market expectations are high for Ethereum's upcoming roadmap upgrades, particularly following the Pectra upgrade completed on May 7.
Luke Nolan, Senior Ethereum Researcher at CoinShares, explains that while Pectra didn't introduce any single groundbreaking change, it included multiple Ethereum Improvement Proposals (EIPs) that enhance scalability protocols—laying the groundwork for future major improvements.
A key feature of the Pectra upgrade is its expanded capacity to process "blobs" (temporary data storage units), helping preserve more data at the consensus layer. Nolan notes that sometimes even small narratives can fuel positive sentiment.
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Technical Indicators Show Promising Signs
From a technical perspective, Ethereum's charts also show positive signals. At the time of writing, ETH has rebounded strongly from its May lows to around $2,665, firmly above its weekly pivot point (PP) of approximately $2,400–$2,500.
Immediate support lies at $2,483–$2,485, with the weekly PP and deeper Fibonacci levels providing a solid foundation. Notably, the chart shows a potential "bull flag" pattern, and the 50-day moving average has crossed above the 200-day moving average—forming a "golden cross," a strong bullish indicator.
With ETH consolidating above $2,520, short-term buying pressure appears dominant. Key resistance levels loom at R1 (around $2,900–$3,000) and all-time highs, suggesting bulls may soon test higher price targets. However, traders should monitor trading volume and breakout confirmation to validate the uptrend's sustainability.
FAQs
1. Why is Bitcoin surging toward $110,000?
Bitcoin's rally is driven by institutional adoption, ETF inflows, and macroeconomic factors favoring scarce assets.
2. Will Ethereum follow Bitcoin's price movement?
While ETH often correlates with BTC, it can develop independent momentum due to its unique ecosystem and upgrade cycle.
3. What's the significance of the Pectra upgrade?
Pectra improves Ethereum's scalability and data handling capacity, setting the stage for future network enhancements.
4. How reliable are price predictions like the $10,000 ETH forecast?
Analyst predictions should be taken as educated speculation—always conduct your own research before investing.
5. What are key technical levels to watch for ETH?
Critical support sits at $2,400–$2,500, with major resistance between $2,900–$3,000 and all-time highs.
6. How do ETF inflows affect Ethereum's price?
Sustained institutional investment through ETFs creates steady buying pressure and validates ETH as an institutional-grade asset.