Ethereum's Value Nears $3000, Meme Tokens PEPE and WIF Bolster Market Recovery
Cryptocurrency Market Bounces Back, Ethereum and Meme Coins Shine
The cryptocurrency market experienced a minor recovery on Tuesday, with meme coins like Dogwifhat (WIF) and Pepe Coin (PEPE) taking center stage. Simultaneously, Ethereum's resurgence surpassed a 4% increase as institutional investors shifted their focus, leaving Bitcoin in the dust.
Ethereum Roars Back with Pectra and Institutional Support
Ethereum's recovery began with the Pectra upgrade and a surge in staking adoption, tempting institutional investors to steer capital from Bitcoin to Ethereum. By May 28, Ethereum had amassed a staggering total capital of $219 billion, cementing its position as the blockchain leader, edging past Tron and Solana.
Data from Spot Ethereum ETFs show a clear capital rotation trend, with a net inflow of $78.2 million on Monday, compared to a net outflow of $267.5 million in Bitcoin ETFs.
As per the latest CoinShares report, Ethereum has been the preferred choice for institutional and retail investors, leading inflows as Bitcoin and XRP trail behind.
Analyst Rekt Capital believes Ethereum is attempting to retake $2,500 as support, reminiscent of the parabolic run above $4,000 in mid-2021. The next region of interest seems to be $3,000.
Michael van de Poppe has identified a hidden bullish divergence on the ETH chart, signaling an imminent upward breakout. Other analysts have also noticed bullish signals for ETH on the ETH/BTC chart.
At the time of writing, the ETH price stood at $2,613, a testament to its robust recovery. Additionally, trading volume has swelled by 61% within the last 24 hours, indicating growing investor interest.
Meme Coins Rule the Day
The meme coin phenomenon is fueling the crypto market once again, driving the prices of WIF and PEPE. Their tumultuous journey during the last market crash has turned into a remarkable recovery as traders hopped back on the bandwagon.
Coinglass data reveals a frenzy of shorts liquidation in various meme coins like 1000PEPE, DOGE, PEPE, WIF, MOODENG, and others, which contributed significantly to the price surge. Specifically, $6.3 million in 1000PEPE and $3.25 million worth of shorts were liquidated, propelling the Pepe Coin price over 10%.
WIF's price soared almost 13%, with the current rate hovering around $0.96. The 24-hour low and high stand at $0.843 and $1.001, respectively.
[1] - Source Citing Increasing Institutional Investment in Ethereum
[2] - Source Predicting Ethereum's Potential Breakthrough
[3] - Source Discussing Ethereum's Technical Analysis
[4] - Source Providing Overview of Ethereum's Price Movements
[5] - Source Predicting Potential Bearish Corrections for Ethereum
- The surge in Ethereum's staking adoption and the Pectra upgrade have caught the attention of institutional investors, enticing them to invest in Ethereum instead of Bitcoin, contributing to a shift in capital within the cryptocurrency market.
- By May 28, Ethereum's total capital surpassed $219 billion, moving ahead of Tron and Solana, and demonstrating its dominance in the blockchain sphere.
- The net inflow of $78.2 million into Spot Ethereum ETFs on Monday suggests a clear trend of capital rotation toward Ethereum, while Bitcoin ETFs saw a net outflow of $267.5 million.
- The preference for Ethereum among institutional and retail investors, as indicated by the latest CoinShares report, has led Ethereum to top the list of inflows, with Bitcoin and XRP trailing behind.
- Analysts, including Rekt Capital and Michael van de Poppe, have pointed out bullish signals for Ethereum, including a potential upward breakout and a testing of $2,500 as support, indicating that Ethereum may continue to grow in the short term.
