QCP Capital: Ethereum Set for 35% Rally as Spot ETF Inflows Reach $90M

Ethereum is showing strong potential for further gains, with analysts from QCP Capital predicting a possible 35% rally as the cryptocurrency continues to gain momentum. As of the latest data, Ethereum (ETH) has outperformed the broader cryptocurrency market, climbing 11.65% to reach a high of $3,688. This surge comes as capital flows rotate away from Bitcoin, with Ethereum benefiting from strong inflows, particularly in the form of spot Ethereum ETFs, which have seen more than $90 million in inflows.

One key indicator of Ethereum’s growing strength is the performance of the ETH/BTC trading pair. The ETH/BTC ratio has risen by 17.8% this week, reaching 0.03760, signaling that Ethereum is gaining relative strength against Bitcoin. Analysts at QCP Capital have pointed out that as Bitcoin’s dominance in the market has decreased from its high of 61.50%, Ethereum has been holding up well. The 0.0400 level for the ETH/BTC pair is now in focus as the next key level to watch, further supporting the idea that Ethereum could continue its bullish trend.

Despite Ethereum lagging behind Bitcoin and Solana in the current rally, QCP Capital suggests that Ethereum is positioning itself for a potential retest of its all-time high of $4,868, which would represent an upside of approximately 35.4% from its current price level. The analysts note that Ethereum’s daily charts are showing several bullish patterns, including the potential for a golden cross. This is a technical signal that occurs when the 50-day and 200-day Exponential Moving Averages (EMAs) approach a bullish crossover, which historically has been a strong indicator of upward price movement.

In addition to these technical factors, Ethereum’s decentralized finance (DeFi) ecosystem has also experienced growth, contributing to the overall bullish sentiment. The total value locked (TVL) in Ethereum-based DeFi protocols has increased by around $10 billion, which is a notable sign of expanding adoption and capital inflows into Ethereum’s ecosystem. This growth is partially attributed to broader market dynamics, including the bullish momentum sparked by Donald Trump’s U.S. presidential election win, which has likely boosted investor confidence in the crypto space.

In summary, Ethereum’s recent price action, technical indicators, and growing DeFi ecosystem suggest that it is on a strong upward trajectory. With $90 million in spot ETF inflows and the ETH/BTC ratio continuing to rise, Ethereum is showing clear signs of strength. If these trends continue, Ethereum could potentially reach its all-time high of $4,868, representing an upside of around 35% from current levels.