Key Points:
Ethereum closed above $2,700 for the first time in a month.
Bitcoin (BTC) dominance is declining, and ETH's critical 72-hour window may confirm the start of altcoin season.
Ethereum closed above $2,700 on Wednesday (July 9), marking the first time in four weeks, showing sustained bullish momentum. The upward trend continued into Thursday (July 10), with ETH maintaining a strong high timeframe structure, laying the groundwork for a rebound towards the psychological level of $3,000.
Data analysis platform Swissblock noted that the current Ethereum scenario relative to Bitcoin is more bullish than in the second quarter, potentially signaling the start of altcoin season. The analysis pointed out that ETH inflow momentum is strengthening, its ecosystem narrative is bolstered, contrasting with the weakening and consolidation of Bitcoin's strength. Charts show ETH's relative performance outperforming the market, echoing the reversal seen in early May, which triggered the first altcoin recovery since the price bottomed on April 7.
Swissblock emphasized a critical 72-hour window, suggesting that if ETH remains strong, it could mark the true beginning of altcoin season. This shift aligns with the decline in BTC dominance, which has historically signaled a surge in altcoins.
Another significant factor behind Ethereum's recent strength is the noticeable increase in institutional demand. The Chicago Mercantile Exchange (CME) Ethereum futures open interest has surged to $3.27 billion, the highest level since February 2. This spike indicates an increase in institutional holdings, reflecting professional investors' growing interest in ETH as price momentum strengthens.
Further reinforcing this trend is the continued capital inflow into spot ETH exchange-traded funds (ETFs). Net inflows have remained positive for eight consecutive weeks, accumulating over 61,000 ETH during this period. The rise in futures interest and ETF inflows aligning with ETH price breakthroughs adds credibility to the current rebound.
Ethereum is exhibiting a clear market structure, with bulls attempting to decisively push the price above the long-term resistance zone between $2,650 and $2,750. This level has been a solid ceiling since May, repeatedly rejecting bullish breakouts.
A successful breakout of this range would open the path to the psychological barrier of $3,000. Charts show a low volume area between $3,000 and $3,300, which could lead to accelerated price movement. Simply put, the lower past trading within this range means less resistance, increasing the likelihood of a rapid rise if momentum continues.
The daily relative strength index (RSI) reading above 60 indicates sustained buying pressure and the strength of the current rebound. Ethereum is also above its 50, 100, and 200-day exponential moving averages.
If ETH fails to break above $2,750 decisively, it may continue its consolidation phase. Especially with increased leverage usage, a pullback to the liquidity low around $2,375 is still under consideration. As crypto analyst Maartunn pointed out, ETH futures open interest surged over 10.6% on Tuesday (July 8), signaling increased speculation. Historically, 11 out of the last 13 instances of leverage surges were accompanied by price corrections.
As Ethereum stands at a critical turning point, the upcoming trading days may determine whether the asset finally breaks free from its multi-month range or is dragged back into another round of consolidation.
Related: Bitcoin (BTC) analysts warn that the time for another parabolic rise is "running out"
Original: “Ethereum (ETH) is Highly Likely to Rally to $3,000 This Week: Here’s Why”
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