Ethereum News Today: Ethereum Surges 5% to 5-Month High as Bitcoin Profit-Taking Boosts Altcoins

Bitcoin (BTC) initiated a significant surge at the start of the week, surpassing $123,000 and setting a new record. This upward movement had a limited impact on altcoins initially, but as profit-taking in BTC began, Ethereum (ETH) and other altcoins started to rally.

Ethereum reclaimed the $3,000 level for the first time since February 1st, reaching a 5-month high of $3,150. According to analytics firm Swissblock, one of the key drivers behind Ethereum's rise is the capital rotation from Bitcoin. Analysts noted that Bitcoin's previous four bullish waves this year lasted between 15 and 30 days. The current rally has reached its 12th day, suggesting that profit-taking in BTC may begin soon. Capital flowing out of BTC could potentially move into altcoins, particularly ETH, further boosting its value.

Analysts also observed that the ETH/BTC ratio broke upwards for the first time since May, signaling a trend reversal. The ETH/BTC ratio has broken above its 200-day moving average for the first time in a year, indicating medium- to long-term upward momentum for ETH.

Pseudonymous crypto analyst Merlijn The Trader argued that Ethereum could experience an unprecedented rally. According to the analyst, if Ethereum follows Bitcoin's 2018-2021 market cycle, it could experience a 1,100% rally. The analyst noted that ETH's current price movements mirror those of BTC between 2018 and 2021, particularly the rates of increase and correction being identical. According to the analyst, ETH could experience the same 1,100% increase as BTC from now on, potentially rallying to around $18,205.

While the analyst's chart suggests a significant rally is imminent for Ethereum, it alone isn't enough to trigger a surge. Investment decisions should not be based on a single piece of data or analysis, as these analyses are often fallible and are merely helpful data that has never been proven 100% accurate.