Bitcoin Surpasses $110,000, Is Ethereum Poised for a Surge?

Recently, the cryptocurrency market has once again welcomed a wave of bullish trends. In the past 24 hours, Bitcoin's price increased by 3.7%, breaking through the $110,000 mark, just a step away from the historical high set in May. Ether followed closely with a rise of 3.8%, rebounding to over $2,620, demonstrating a strong correlation with Bitcoin.

However, the focus of the market is: as Bitcoin approaches its historical high, is the increase in Ether merely a passive follow-up? Or is it brewing an independent upward trend?

Analyst: ETH is expected to break $10,000 within a year

A well-known crypto market analyst made a bold prediction on social media, stating that Ether will reach $10,000 or even higher within the next year.

The analyst pointed out that the true drivers of ETH's future will no longer come from retail investors, as they may have developed a bias against the real value of ETH, making it difficult to re-enter. He stated: "Retail investors may not return to ETH as they see no value in it. But they will have to watch ETH rise to $10,000, as enterprises, governments, and Wall Street are injecting trillions of dollars into this chain."

This analyst compared the development trajectory of ETH with the cycle of Bitcoin in 2017, pointing out that ETH's development is two cycles slower than BTC, but is making steady progress. He emphasized that the new batch of market buyers will not care about the doubts or concerns in the market, as they are even unaware of the existence of those "old-school" critics.

ETH ETF Continues to Attract Capital: Institutional Interest is Obvious

Data shows that since May 16, Ethereum-related investment products have led digital asset inflows for the second consecutive week, attracting $296.4 million in funds, bringing the total fund flow over seven weeks to $1.5 billion.

A research director stated: "This is the strongest capital inflow since the US elections," and added that this figure currently accounts for 10.5% of the total assets under management for Ethereum.

Another industry expert pointed out that the upward momentum of ETH seems to be driven by several factors: institutional ETF fund flows showing renewed interest in ETH products, and the market's growing expectations for the Ethereum roadmap upgrade.

At the same time, the ETH/BTC market capitalization ratio rose above 0.14, which is seen as a signal that there may be a shift back to "risk-seeking" altcoins, potentially indicating an early sign of a broader altcoin market rally.

Pectra Upgrade Boosts Ether Development

Despite the relatively flat price trend of ETH recently, its fundamentals remain strong. The market has high expectations for the upgrades to the Ethereum roadmap, with last month's completion of the Pectra upgrade playing a significant role.

An Ethereum researcher stated that although the Pectra upgrade did not bring about any significant single change, it includes multiple improvements to the Ethereum protocol, which lay the groundwork for further scalability in the future. Scalability has long been a major bottleneck for Ethereum.

One of the key features of the Pectra upgrade is the enhanced ability to process "blobs" (temporary data storage units) on the Ethereum blockchain, which helps retain more data at the consensus layer. The researcher believes that sometimes a small narrative is enough to drive positive sentiment.

The technical outlook is good

From a technical analysis perspective, Ethereum's current trend also shows positive signals. As of the time of writing, the price has strongly rebounded from the May low to around $2,665 and is firmly standing above the weekly pivot point (approximately $2,400-$2,500).

Below, the range of $2,483-$2,485 constitutes immediate support, while the weekly pivot point and deeper Fibonacci support provide a solid foundation. It is worth noting that the chart exhibits 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 of which are strong bullish signals.

ETH continues to gain momentum above $2,520, indicating that short-term buying power is dominant. Key resistance above looks towards approximately $2,900-$3,000 and historical highs, thus bulls are expected to continue pushing towards higher resistance levels in the near term. However, investors still need to closely monitor market trading volume and breakout situations at key levels to confirm the sustainability of the upward trend.