Analysts: Ethereum Breaks $4,900, Set to Outperform Bitcoin
Several analysts signal a bullish outlook for Ethereum after its price surged beyond $4,900, setting a new all-time high. Crypto Rover highlights that exchange reserves are depleting at record rates, indicating growing demand and sustained upward pressure on Ethereum price. Miles Deutsher notes that Bitcoin’s rally has stalled near recent highs, while Ethereum has entered a fresh price discovery phase. Persistent buy-the-dip activity suggests traders are rotating capital into stronger assets when Bitcoin shows weakness. This rotation, coupled with shrinking exchange reserves, underpins expectations that Ethereum will outpace Bitcoin in the near term.
Bullish
Shrinking exchange reserves and record‐low on-chain supply have historically driven up Ethereum price as demand outpaces liquid supply. At the same time, Bitcoin’s stalled momentum has prompted traders to seek stronger alternatives, fueling buy-the-dip activity in ETH. Similar rotation patterns were observed during ETH’s past breakouts, where reduced exchange reserves coincided with sharp price rallies. In the short term, continued demand and technical breakout suggest further gains. Over the long term, Ethereum’s robust network growth and growing DeFi/NFT usage underpin a sustained bullish trajectory.