While there have been talks about Ethereum (ETH) staying dud for a while, the world’s second-largest cryptocurrency is now making big moves. In the last 24 hours, the Ethereum (ETH) price has jumped by 9% currently trading at $2,424 levels with a market cap of $291 billion.
Ethereum Gears Up for 2024 Price Rally
Market analysts have been predicting that 2024 will be the year for Ethereum, and it shall close the gap with the Bitcoin market dominance.
In a recent surge, the long-dormant Ethereum (ETH) experienced a notable rally, surpassing the $2,400 mark and establishing a new high for the year. This rally has resulted in all major term implied volatilities (IVs) reaching yearly highs, while the 30-day volatility (DVOL) has soared to 70%, marking a new peak since April, reports, Greeks.Live.
Despite this bullish movement, options data from Skew indicates that institutional traders have not yet joined the rally, maintaining recent levels without following the upward trend. The absence of institutional FOMO (Fear of Missing Out) suggests a cautious approach among these traders.
As highlighted in recent discussions, the year-end period is characterized by tight liquidity, making the market susceptible to sudden spikes and falls. Investors are navigating this environment with a focus on options purchases that offer a favorable breakeven ratio.
Ethereum Favorable Over Bitcoin for Q1 2024
So far, Bitcoin has dominated the crypto market rally during the fourth quarter of the year. On the other hand, while Ethereum has progressed, it has failed to keep up pace with Bitcoin.
But market analysts believe that Ethereum will lead the crypto market rally going into 2024. Crypto analyst Michael van de Poppe has suggested a historical pattern may be unfolding, indicating a peak in Bitcoin dominance before the upcoming Bitcoin halving. According to van de Poppe, this trend typically marks the commencement of a bull market for altcoins, with Ethereum expected to play a prominent role in this phase.
Apart from just ETH, the entire Ethereum ecosystem is heating up with Arbitrum and Optimism taking the lead as well. On the other hand, the Ethereum development is working on reducing the PoS complexity with founder Vitalik Buterin proposing some key solutions.