Ethereum Outpaces Bitcoin in Weekly Gains, Signaling Strong Demand

Ethereum Outpaces Bitcoin in Weekly Gains, Signaling Strong Demand

Ethereum (ETH) has demonstrated remarkable strength in the cryptocurrency market, outperforming its larger rival Bitcoin (BTC) in terms of weekly gains. Between September 17 and September 23, ETH rallied an impressive 18.7%, pushing its price to $2,620. This surge comes amid increasing open interest, positive funding rates, and notable network growth, all indicating robust demand for the second-largest cryptocurrency by market capitalization.

As of the latest data from Cointelegraph Markets Pro and TradingView, Ether is trading at $2,650, up 4% in the last 24 hours. In comparison, Bitcoin is trading at $63,678, with a more modest 1.8% increase over the same period. The total cryptocurrency market capitalization has risen by 2% to $2.3 trillion.

Ether Strengthens Against Bitcoin

Ether’s weekly performance has been particularly noteworthy, with a 17.5% increase over the past seven days, significantly outpacing Bitcoin’s 9.8% gain. This outperformance is reflected in the ETH/BTC ratio, which has climbed approximately 7.5% in the same timeframe, reaching a three-week high of 0.0424 on September 23.

The reversal in the ETH/BTC ratio suggests growing investor interest in Ethereum. Data from Farside investors reveals that US-based spot Ethereum ETFs experienced positive inflows last week, albeit modest, with $5.2 million and $2.9 million flowing in on September 19 and 20, respectively.

However, it’s worth noting that Ethereum investment products are still experiencing outflows overall. CoinShares data shows that Ether has seen outflows for five consecutive weeks, totaling $29 million between September 16 and 20. James Butterfill, head of research at CoinShares, attributes this to “persistent outflows from the incumbent Grayscale Trust and scant inflows from the newly issued ETFs.”

Ethereum Network Activity Signals Higher Demand

Ethereum’s network activity further supports the bullish sentiment. According to DappRadar, while the top Ethereum decentralized applications (DApps) have seen a slight 1.42% decrease in unique active wallets over the last 24 hours, they’ve experienced a significant 21.92% gain in volume. The number of DApp transactions on the Ethereum network has increased by 6.5%, driven by popular platforms like Uniswap, Balancer, ParaSwap, and Aave.

Additionally, data from DefiLlama shows an uptick in the total value locked (TVL) on Ethereum, rising from $44.1 billion to $49.65 billion between September 18 and 23. This increase in TVL indicates growing user interaction with the blockchain, potentially leading to higher demand for Ether.

ETH/USD: Market Outlook

As Ethereum’s price hovers around the $2,600 support level, analysts are closely watching key indicators. The Long/Short Ratio reveals that 52.28% of traders are holding long positions, suggesting a slight bullish bias in the market. However, the marginal advantage remains fragile and dependent on broader market conditions.

With Ethereum’s trading volume surging by 79.30% to $28.21 billion, speculation about potential upward price movements is growing. However, sustained growth will depend on continued network activity, increased Ether transactions, and consistent DApp usage.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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