Bitcoin’s (BTC) recent price surge above $101k has sparked a wave of positivity across the altcoin market, with Ethereum (ETH) taking the lead. Fears of further crypto capitulation have eased, especially with less than a week left before the much-anticipated second inauguration of pro-crypto U.S. President-elect Donald Trump.
The political shift in the U.S. is set to pave the way for broader global adoption of digital assets and Web3 protocols. Currently, over 562 million people around the world own crypto assets, signaling that adoption is still in its early stages, with huge growth potential ahead.
Ethereum’s Bullish Setup: What the Charts Say
Technically, Ethereum’s price has been preparing for a significant upward move over the past year. As one of the largest altcoins, with a fully diluted market cap of about $407 billion and a daily trading volume of $26 billion, Ethereum has been forming an inverted head and shoulders (H&S) pattern. This setup is supported by a strong level at around $2,923, indicating a potential price breakout soon.
With a major resistance level near $4,060, Ethereum is aiming for a new all-time high, helped by growing institutional interest. Additionally, renewed attention from U.S. spot Ether ETFs has contributed to reducing Ether’s circulating supply, boosting the bullish outlook.
If you examine the formation of the left shoulder, #Ethereum $ETH consolidated around $2,800 for 37 days in mid-April before moving higher.
A similar consolidation could occur now while the right shoulder of this head-and-shoulders pattern develops. pic.twitter.com/O0TQGu3YSr
— Ali (@ali_charts) January 17, 2025
Ethereum’s Dominance
Ethereum continues to lead the Web3 space, attracting top developers due to its vast ecosystem and strong support from well-known investors. Co-founded by Vitalik Buterin, Ethereum has grown into a thriving Web3 network, with a total value locked (TVL) of $67 billion and a stablecoin market cap of $114 billion.
The Pectra Upgrade
Looking ahead, Ethereum’s core developers are planning the Pectra upgrade, which is expected to be completed by the end of Q1 2025. The upgrade aims to enhance both the execution and consensus layers of Ethereum to support future growth.
A key feature of the Pectra upgrade is EIP-7702, which will allow regular wallets to temporarily function as smart contracts during transactions, improving security. Another important change is EIP-7251, which will increase the staking limit for validators from 32 ETH to 2048 ETH, making Ethereum’s network stronger and encouraging more participation.
While the world watches, Ethereum is quietly laying the groundwork for the next chapter in blockchain technology.