FameEX Hot Topics | Analyst: Ethereum Holding Above $3K Could Trigger 1,100% 'Vertical Rally'

Ether (ETH) has reclaimed the $3,000 level for the first time since February 1, signaling a powerful rebound and a potential setup for a major rally. While Bitcoin (BTC) pulled back to $116,500 earlier this week, Ether continued gaining, reaching $3,090 and outperforming BTC on a relative basis. This divergence suggests growing investor confidence in ETH as it regains key technical footing.

One of the main factors driving Ether’s surge is capital rotation from Bitcoin. Analytics firm Swissblock notes that BTC’s past four bullish phases each lasted between 15 to 30 days. As the current BTC run enters day 12, profit-taking may be starting, with funds flowing into altcoins—ETH in particular. This shift in capital allocation marks a familiar pattern seen during past altcoin market cycles and could signal the beginning of another “altseason.”

Supporting this trend, the ETH/BTC pair has broken bullish structure on the daily chart for the first time since late May. Even more notably, ETH/BTC has regained its position above the 200-day moving average—something not seen in over a year. This long-term technical breakout hints at renewed strength in Ether’s market position versus Bitcoin and suggests momentum could continue building in ETH’s favor.

Additional technical signals are further strengthening the bullish narrative. ETH advocate Ted Pillows highlighted that the weekly Relative Strength Index (RSI) on the ETH/BTC chart has exited a three-year-long downtrend. A golden cross—where the 50-day moving average crosses above the 200-day—is also nearing, both of which are widely viewed as strong trend-reversal indicators. With Bitcoin’s dominance slipping, altcoins like Ether may be poised to take the spotlight.

Crypto analyst Merlijn The Trader offered a bold projection, suggesting Ether might replicate Bitcoin’s 2018–2021 market cycle. Based on a fractal pattern of a 63% correction followed by a 342% recovery rally, he believes ETH could see a 1,110% surge from its April low of $1,550—potentially reaching $18,205. While fractal analysis remains speculative and lacks academic consensus, the historical similarities are fueling enthusiasm among ETH bulls, who believe the next major breakout could already be underway.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.