The recent crypto market pullback hasn’t fazed Ethereum. The second-largest crypto asset has bounced back strongly and now looks primed for more upside.
Ethereum (ETH) has reclaimed the $3,100 level for the first time since February, after gaining nearly 7% in the past 24 hours. At the time of writing, the asset trades around $3,153, making it one of the day’s top-performing assets.
The rebound marks a strong recovery from its earlier dip to $2,965 just days ago amid a broader post-rally slide that triggered losses across the board. It also represents a 21% gain over the past week, putting ETH well ahead of Bitcoin (BTC) and most of the market.
What’s driving ETH’s uptrend?
The jump in price comes as exchange-traded funds tied to the asset record another day of inflows, logging $192 million across the nine listed. Institutional demand is also rising, with more firms now turning to ETH as a long-term treasury reserve asset.
But what’s pushing the asset even higher is demand from Asia. A recent Matrixport report shows that most of Ethereum’s recent gains happened during Asian trading hours. This suggests Asia-based traders are playing a key role in driving the rally, helping the asset break through key resistance levels and regain market strength.
With the asset now gaining momentum, analysts are pointing to signs of a broader trend shift.
Is Ethereum set to seize market spotlight?
Weighing in on the price performance, Former BitMEX CEO Arthur Hayes forecasts that “ETH season” is edging closer, building on his earlier predictions that the asset is fated to outperform BTC.
Hayes’ comments echo broader sentiment that ETH could unlock more upside, potentially setting the stage for a return to all-time highs and a leading role in the market’s next leg.
Analyst Matthew Hyland added weight to the idea, noting that if Ethereum breaks out and holds above key levels against Bitcoin, there’s a “99% chance” Bitcoin dominance has already topped.
“It’s basically impossible for dominance to push higher if ETH continues higher against BTC,” he said.
A drop in Bitcoin dominance usually means capital is flowing out of BTC and into other digital assets, especially large-cap altcoins like ETH. Historically, this shift tends to signal the start of a more aggressive rally, often referred to as “alt season.”
With the combination of strong ETF flows, rising institutional interest, and surging demand from Asia, the second largest crypto asset now sits in a position to lead the next phase of the crypto market’s uptrend.
