As bears hesitate, a major technical signal disrupts the market. Ethereum is showing signs of a bullish turn from Bitcoin, backed by growing institutional activity and massive volume resurgence. Could the next crypto market explosion come not from BTC, but from ETH?
The $3,700 zone represents much more than just a psychological number for Ethereum traders. Since the crypto crash of October 11, this support level has demonstrated its robustness on three distinct occasions. Each time the price has dropped to test this zone, buyers have intervened massively to defend the level and trigger a rebound.
This technical configuration forms what analysts call a “triple bottom” pattern. This is a chart pattern traditionally considered bullish. The accumulation of buy orders around this threshold creates a solid barrier against further declines. Institutional traders appear to have identified this zone as a strategic entry point, thus reinforcing the probability of a reversal.
On-chain data from Santiment reveals an interesting phenomenon: the significant increase in short positions on Ethereum. Historically, this accumulation of bearish bets often coincides with market reversals to the upside. When too many traders position themselves in one direction, the market tends to go against them by triggering a short squeeze that amplifies the reverse movement.
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A fundamental element reinforces the bullish thesis for Ethereum: the visible rotation of capital from Bitcoin to ETH. The ETH/BTC pair, which measures the relative performance of Ethereum against Bitcoin, has just signaled a trend reversal after several years of underperformance. This change in dynamics suggests that investors are rebalancing their portfolios in favor of Ethereum.
Data from the Chicago Mercantile Exchange (CME) confirms this trend in the institutional derivatives market. The volume of Ethereum futures contracts is increasing significantly compared to Bitcoin futures, indicating growing interest from professional players in the altcoin. This migration of liquidity from the dominant crypto to Ethereum reflects renewed conviction in Ethereum’s ecosystem potential, particularly with developments around the “Surge” upgrade and the expansion of layer 2.
If buyers manage to maintain the price above the $3,700 floor, Ethereum could have the technical foundation necessary to target new all-time highs in the coming weeks. The combination of strong support, excessively bearish sentiment, and capital rotation creates a favorable environment for a bullish acceleration.
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