Altcoins
Ethereum Price Retests Highest Level in 10 Months Amid Post-Shapella Gains
Ethereum price has been hovering above the crucial $2,000 level for the past two days off the back of the successful Shanghai upgrade and the overall bullish sentiment in the crypto market. Ethereum, the largest altcoin by market cap has jumped by more than 10% since its upgrade on Wednesday, raising its year-to-date price to 72%.
Fundamentals
Ethereum price built on its post-Shapella upgrade on Friday as investors felt relieved following the successful Ethereum upgrade without potential negative effects. ETH’s price briefly climbed to $2,128.76 earlier on Friday, its highest level since May 16, 2022. The altcoin’s total market cap has inched nearly 3% higher to $247.8 billion over the past day, while the total volume of ETH traded increased by 17%.
The Ethereum network completed its long-awaited Shanghai upgrade on Thursday morning, pumping Ether’s price higher. The upgrade was intended to introduce new enhancements such as ETH validator withdrawal, improved security, and reduced gas fees. Many were initially concerned that the Shapella upgrade would pump selling pressure after the launch. Shanghai is the second-largest developmental upgrade on the Ethereum blockchain after last year’s Merge.
Ethereum has also been thriving on the decline in the latest US inflation data that has raised hopes of the Federal Reserve putting a pause or ending its interest rate hike cycle. Lower interest rates tend to pump liquidity into cryptocurrencies, raising their prices higher. The global crypto market has moved higher to $1.26 trillion in the past 24 hours, while the total crypto market volume rose by 25.71%.
The dollar index, which measures the performance of the US currency against six others has been falling following the latest US CPI reading and rumors about a dovish Fed. Data released on Thursday shows that the US Producer Price Index (PPI) fell by the most in almost three years in March. The US Treasury yields climbed on Thursday despite the positive economic data released earlier this week.
Ethereum Price Analysis
Ethereum price has been flashing green for the past few days, flipping the important resistance level at $2,000. At the time of writing, ETH was trading 2% higher at $2,052.19. On the daily chart, ETH has remained above the 25-day and 50-day moving averages, as well as the 50-day and 200-day exponential moving averages. Its Relative Strength Index (RSI) has moved higher into the overbought zone, while the MACD indicator remains bullish.
Therefore, I expect the Ethereum price to continue moving higher as buyers eye the next resistance level at $2,478. However, a move below the crucial support level at $1,900 will invalidate my bullish thesis.
ETH Price Chart
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
Solana price has jumped more than 8% over the past week, breaching the important level of $60. At the time of writing, Solana was trading 3% higher at $61.07. The asset’s total market cap has climbed to $25.9 billion over the past week, ranking it the 6th largest cryptocurrency after XRP. The total volume of SOL traded over the last day has declined by 8%.
SOL’s Bullish Cues
Solana’s price has been among the best-performing cryptocurrencies this year amid continuous growth. The “Ethereum killer” has consistently impressed investors throughout the year on the back of a resurgence in bullishness, which saw SOL’s price climb more than 513% in the year to date. Institutional investors have also shared the bullish sentiment, making Solana their most preferred altcoin.
In the week ending November 24, Solana recorded inflows worth nearly $3.5 million, significantly more than the other altcoins’ inflows combined. The asset’s monthly inflows were higher at $40.2 million, lower than Ethereum’s $99.6 million inflows in the same period. Other altcoins, including Litecoin and Ethereum, noted significant outflows, making Solana nearly half of the home for DeFi. This implies that when it comes to institutions, Solana is currently the best-performing altcoin with the potential of a long-term rally much higher than other digital assets.
Notably, the Solana DeFi ecosystem accomplished a significant milestone earlier this week. Its Total Value Locked (TVL) hit a new yearly peak of over $655 million,…
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