Ethereum prices have regained momentum, surpassing the $3,400 level for the first time since mid-January. Encryption data.
The asset has posted a strong 9% rallies in the last 24 hours, showing a significant recovery after months of unperformance compared to Bitcoin.
ETH is better than Bitcoin
Bitunix analyst Dean Chen noted that ETH’s recent rally continued to suffer a sudden recession in April when the tariff shock caused widespread panic.
Ethereum has since risen by more than 150%, far surpassing the 65% increase in Bitcoin over the same period. This difference suggests an increased risk appetite among traders looking beyond BTC for greater returns.
As a result, full-scale Altcoins are benefiting from this shift. Encryption Data shows Solana, XRP, Cardano and Dogecoin have recorded profits of over 5% in the past day.
Veteran trader Peter Brandt calls the performance the official start of the “Altcoin season.”
That view is supported by blockchain analytics company Coinglass. Coinglass is the best reading since February, with the Altcoin season index reaching 39 this week.
At the same time, Altcoins’ total market capitalization shows a marked rise pointing to new investors’ interest outside of Bitcoin.
What drives Ethereum price hike?
Chen said Ethereum climbing is linked to fundamental factors, not just market speculation.
Furthermore, changes in ETH market performance reflect a wider shift in feelings towards the network itself. Ethereum is increasingly seen as a foundational layer of innovations such as Stablecoins and Asset Tokenization, leading to increased interest from institutional investors.
Ryan Adams, co-founder of Bankles, said:
“We are finally talking about eth’s assets and slowly beginning to evaluate it in a way that should be evaluated, as a global reserve asset.
This is evidenced by an increase in flow into US-listed spot Ethereum ETFS. On July 16th, nine funds recorded fresh capital of over $726 million, reflecting clear signs of increased investor confidence.
At the same time, Ethereum has acquired its position as a financial asset, with companies like Sharplink Gaming and Bitmine Immersion Technology recently adding ETH to their balance sheets. These companies have accumulated over $1.6 billion in ETH over the past month.
What’s next for ETH prices?
Bitmine Chairman and Fundstrat CIO Chairman Thomas Lee noted that Ethereum tends to follow the same trajectory as small-caps. This suggests that risk appetite and potential Fed rate reductions can further support ETH prices later this year.
In forecast markets like Polymarket, 70% of traders expect ETH to reach $4,000 by the end of the year, while 40% believe it could reach $5,000. This is in line with forecasts from Consensy, which forecasts a year-end price of $4,900 and a long-term target of $15,800 by 2028.