In a shift, Ethereum (ETH) has outpaced Solana (SOL) in the last 24 hours, leading some experts to believe that a “great capital rotation” is underway.
Ram Ahluwalia, CEO of Lumida, a cryptocurrency investment firm, is among those who are bullish on Ethereum’s prospects. Taking to X on December 28, the CEO said the “great rotation,” referring to the capital injection, is on. The coin could be ready for a new all-time high, above $5,000, in the coming few trading weeks or months.
Ethereum Outperforms Solana In The Past 24 Hours
The resurgence in Ethereum is when Solana appears to be cooling off after sharp gains in the past few trading months. While ETH adds roughly 5%, Ahluwalia notes that SOL is down by around the margin in the past 24 hours. This formation is reflected in the SOLETH chart, though SOL bulls maintain a lead over ETH from a top-down preview.
Ahluwalia’s optimism and expectation of ETH stretching gains stem from Ethereum’s recent price action. The coin has broken out of intermittent resistance levels. It is now poised to break even higher, looking at the formation in the daily chart. As it is, ETH is at around December 2023 highs, a cool-off from early today when prices broke above $2,400 to register new 2023 highs.
Notably, looking at the ETH candlestick arrangement, it is evident that buyers have the upper hand. The upswing observed today is primarily due to the surge in trading volume on December 27. The spike in trading volume suggests trader interest. It could fan even more demand, forming a base for ETH to roar towards $3,500 and even $5,000 in the sessions ahead.
For what’s happening, price-wise, Ahluwalia said traders should expect to ride the expected big moves, especially in lower time frames. According to the CEO, ETH will “teleport” as it soars higher, registering new all-time highs in 2024.
Will Dencun And Talks Of Spot Ethereum ETFs Propel ETH To New Highs?
This bullish momentum can attributed to several factors, including network enhancements and even hopes of the United States Securities and Exchange Commission (SEC) approving a spot Ethereum ETF. So far, the crypto community expects the regulator to green-light the first spot of Bitcoin ETFs in early 2024. Once this happens, it is likely that the focus will shift to ETH and whether the SEC will authorize a similar product after the approval of Ethereum Futures ETFs in 2023.
Ethereum is expected to release the Dencun Upgrade in Goerli in mid-January 2024. Implementation is after the community thoroughly tests all proposals. However, Dencun is a vital update that will improve scalability, performance, and security. This upgrade also sets in motion Proto-dank sharding, which will see the main net scale.
Feature image from Canva, chart from TradingView