BTC Gears Up for Another Attempt at Breaking $110,000, Will ETH Follow Suit with a Rally?

Original Title: "BTC Surges Above $110,000, Can ETH Seize the Opportunity for a Rebound?"

Original Source: Bitpush

In the past 24 hours, Bitcoin (BTC) has aggressively surged by 3.7%, reclaiming the $110,000 mark and inching closer to the all-time high set in May. At the same time, Ethereum (ETH) has also risen by 3.8%, surpassing $2,620, demonstrating its correlation with Bitcoin.

However, the key question is: as Bitcoin approaches a new all-time high, is Ethereum's increase merely a passive follow-through, or is it brewing a more independent ETH market?

Analyst: ETH Will Reach $10,000 Within the Next Year

Renowned crypto market analyst DCinvestor boldly predicted on social media that ETH will reach $10,000 or even higher within the next year.

He believes that the true driving force will no longer be retail investors returning, as they may have been "brainwashed," biased against the true value of ETH, and unable to buy back in. DCinvestor says: "Retail isn't coming back to ETH, they've been fully 'psy-opped' into believing ETH has no value. But they'll be forced to watch ETH go to $10k as corporations, governments, and Wall St. pour tens of trillions into this chain."

DCinvestor compares this phenomenon to Bitcoin's 2017 cycle, pointing out that ETH's development is two cycles behind BTC but is steadily progressing. He emphasizes that the new wave of market buyers won't care about market skepticism or "fear" because they are unaware of the existence of those "old-school" critics.

Continued Inflow of ETH ETFs: A Clear Signal of Institutional Interest

Data doesn't lie. The latest CoinShares report shows that Ethereum-related investment products have led digital asset inflows for the second consecutive week since May 16, attracting $296.4 million in funds, bringing the total inflows over seven weeks to $1.5 billion.

CoinShares Research Director James Butterfill wrote: "This is the strongest inflow since the US election," adding that this figure currently represents 10.5% of the total Ethereum assets under management.

Redstone Co-founder and COO Marcin Kazmierczak pointed out that ETH's upward momentum seems to be driven by several factors: institutional ETF inflows showing renewed interest in ETH products, and the market's growing expectations for Ethereum's roadmap upgrades.

Meanwhile, the ETH/BTC market cap ratio has risen above 0.14, seen as a possible signal to pivot back to "risk-on" altcoins, which could be an early "signal" of a broader altcoin season.

Pectra Upgrade Boost

Despite the recent relatively "dull" price action of ETH, its fundamentals remain strong. The market has high expectations for Ethereum's roadmap upgrades, with the Pectra upgrade completed last month (May 7) playing a significant role.

CoinShares Senior Ethereum Researcher Luke Nolan stated that while the Pectra upgrade did not bring about a very significant single change, it included multiple improvements to the Ethereum protocol, laying the foundation for further scalability in the future, with scalability being a longstanding major bottleneck for Ethereum.

One key feature of the Pectra upgrade is to enhance Ethereum's blockchain's ability to process "blobs" (temporary data storage units), which helps preserve more data at the consensus layer. Nolan believes that sometimes a small narrative is enough to drive positive sentiment.

Positive Technical Outlook

From a Tradingview technical chart perspective, Ethereum's current trend also shows positive signals. At the time of writing, the price has bounced strongly from the May low point to around $2,665 and is stably above the weekly pivot point (PP) of about $2,400-$2,500.

On the downside, $2,483-$2,485 forms immediate support, while the weekly pivot point and deeper Fibonacci support provide a strong foundation. Notably, the chart displays a potential "bullish flag" pattern, and a key "golden cross" has formed between the 50-day moving average and the 200-day moving average, all signaling bullish strength.

ETH's continued consolidation above $2,520 indicates short-term bullish momentum. The key resistance above is focused on R1 (around $2,900-$3,000) and historical highs, so bulls are expected to continue to challenge higher resistance levels in the near term. However, investors should still closely monitor market volume and breakouts at key levels to confirm the sustainability of the uptrend.

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