ETH Bulls Chase $2.5K As BTC Traders Rotate Into Ether
Ether (ETH) is recovering, approaching the $2,500 mark, driven by aggressive price action targeting liquidity-rich zones. A recent test of the $2,100-$2,200 support range indicates strong buyer interest. The 3-day chart shows a bullish dragonfly doji pattern, suggesting a potential reversal. The price increase since May has seen the highest volume engagement since mid-2022, reflecting renewed interest from retail and institutional investors. Over 61,000 ETH were withdrawn from Binance, signaling a shift towards long-term holding strategies. Analysis indicates ETH may experience a significant surge as capital rotates from Bitcoin, with historical patterns suggesting upside potential. The ETH/BTC ratio is near multi-year lows, indicating undervaluation. Spot ETF inflows show a shift towards ETH, with a 68.4% month-over-month increase compared to a decline in Bitcoin inflows. This suggests a potential institutional capital rotation towards ETH, reinforcing a bullish outlook.
