Ethereum Up 15% In A Week – Is A Recovery To $3K Back In Sight?

Ether (ETH) rallied 18.7% between September 17th and September 23rd, pushing Bitcoin (BTC) on weekly gains as open interest increased, volume and network growth showed strong demand for ETH.

According to data from Cointelegraph Markets Pro and TradingView, the price of Ether rose 4% in the last 24 hours to trade at $2,650. In comparison, Bitcoin is trading at $63,678, up 1.8% in the last 24 hours. Total crypto market capitalization grew by 2% to $2.3 trillion over the same period.

ETH will strengthen against Bitcoin

Ether has increased by 17.5% in the last seven days, outperforming Bitcoin, whose price has increased by only 9.8% in the same period.

The ETH/BTC ratio has risen approximately 7.5% over the past seven days, reaching a three-week high of 0.0424 on September 23.

A change in the ETH/BTC ratio indicates an increase in demand for Ether. According to data from Farside Investors, the Ethereum ETF, which flows into the US-based space, last week saw minimal inflows of $5.2 million and $2.9 million on September 19 and September 20, respectively.

However, inflows into Ethereum investment products still lagged behind Bitcoin, with Ether seeing outflows for the 5th consecutive week, totaling $29 million between September 16 and September 20, according to CoinShares.

James Butterfill, head of research at CoinShares, said:

“This is due to continued outflows from Greyscale Trust and lower inflows from newly issued ETFs.”

Ether's performance also underlines BTC's market dominance. The chart below shows that Bitcoin dominance has decreased from 58.7% on September 19th to 57.4% on September 23rd. This indicates that the top cryptocurrency is weakening against altcoins, including Ether.

As Bitcoin's dominance continues to wane, market participants expect the price of ETH to rise against its BTC counterpart, suggesting that investors are feeling more bullish about Ether and may be allocating more money to Ethereum investment products.

Data from Coinglass shows that Ether's eight-hour open interest-weighted funding has moved positively since September 16, currently at $0.0072%.

The positive financial support for Ether reflects an increase in demand for long positions, indicating a bullish outlook.

Related: Bitcoin core dev to ‘merge' Bitcoin and Ethereum with cross-chain tunnels

Ethereum network activity shows high demand for ETH

Analyzing Ethereum network activity and measurement solutions is critical to understanding what it takes to hold the $2,600 support. Decentralized applications (DApps) are an integral part of this layer-1 blockchain and their use in transactions shows increasing demand for ETH.

According to Dapradar data, over the past 24 hours, the top Ethereum DApps have seen an average decrease of 1.42% in unique active wallets and an increase of 21.92%.

Moreover, the number of DApp transactions on the Ethereum network increased by 6.5% in the same period, which was increased by the increases of Uniswap, Balancer, ParaSwap and Aave.

Additional data from Defilama shows a significant increase in the total value locked (TVL) on Ethereum, which increased from $44.1 billion to $49.65 billion between September 18 and September 23. The increase in TVL tokens has led to increased user interaction on the blockchain, which has created a huge demand. For ether.

Continued network growth, increased Ether transactions, and DApp usage are essential to holding ETH above $2,600.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.