Ethereum Dethrones Bitcoin as Summer Momentum Shifts to ETH
Ethereum (ETH) has finally broken free from its prolonged decline against Bitcoin (BTC), according to analysts. The second-largest cryptocurrency's rebound is driven by a combination of technical, institutional, and sectoral factors.
One key technical signal is the ETH/BTC pair's successful rebound from a local bottom of 0.0269 to 0.02918. Analyst Aksel Kibar notes that Ethereum has also broken above a horizontal neckline on the dollar chart, forming a medium-term base and reaching a price of $1,880 with $1,842 as key support.
The ETH/USD price remaining above this critical line is crucial for confirming the next target in the bullish pattern at $2,163. Another important factor is Ethereum's dominance in tokenization, where it has reached an impressive $17.1 billion in traditional capital tokenized on its network.
This outshines competitors like Solana and BNB Chain, with BlackRock's flagship BUIDL fund and 1,373 major issuers' smart contracts deployed on Ethereum. This represents a direct long-term growth driver for ETH, as billions of dollars in transactions conducted by traditional businesses require fees to be paid in the network's native cryptocurrency.
The return of capital from traditional funds is also contributing to Ethereum's momentum. According to SoSoValue data, current demand has fully absorbed the capital outflows recorded in May and June, with Ethereum ETFs net inflows reaching $103.90 million in the week ending July 24.