Ethereum has made significant strides in its price this past year. The number 2 cryptocurrency by market cap has returned over 300% returns year-over-year and yet continues to outperform in the market. A good percentage of the digital asset’s value has come from the decentralized finance boom. Being the top smart contracts platform, Ethereum maintains control of about 80% of total value in this space.
In addition, growing positive sentiment in the market has worked in the asset’s favor in recent months. This is because Ethereum, like bitcoin, has proven to be a good hedge against rising inflation. Following bitcoin’s growth trend, Ethereum has posted gains in the market with a new all-time high hit in October. However, ETH has gone on to set a new all-time high while BTC has struggled to attain its recent ATH value of $67K.
Ethereum Gains Big With Market Greed
The crypto market moved into greed territory at the beginning of October and has spent subsequent weeks alternating between greed and extreme greed. What this meant for the market was that more money flowing into the market meant that the value of cryptocurrencies went up. Although the market had since moved out of extreme greed, ETH has not slowed down.
Fear & Greed Index moves into greed | Source: Arcane Research
Ethereum had hit a new all-time high along with bitcoin last month. However, bitcoin had struggled to hold its new record value for long. ETH, on the other hand, has continued to perform impressively in the market. Ethereum hit a new all-time high once again, breaking above $4,354 for the first time ever. The digital asset ushered in November with bullish trends as the asset had broken another all-time high above $4,500.
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The digital asset has struggled to maintain above $4,500 since then. But it has shown tremendous promise to break above this point again by settling north of $3,400 for the time being.
ETH breaks new all-time high above $4,500 | Source: ETHUSD on TradingView.com
Bitcoin Continues To Consolidate
Bitcoin has not done too well in comparison to Ethereum recently. The pioneer cryptocurrency had no doubt dominated the market for the entirety of October. Still, the weeks following its latest all-time high milestone have not been promising.
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Bitcoin had dipped back to $58,000 following its breakout to $67K. Then the digital asset had consolidated well below its ATH, staying in the $58,000 to $64,000 range. A small uptick in momentum at the beginning of November saw bitcoin test the $64,000 resistance point. But the asset had been beaten back down from this range after a brief break above it.
While Ethereum has gone on to hit new all-time highs, bitcoin has dipped back down to $61K. Bears remain determined to drag the asset back down below $60,000. Nevertheless, outlooks for November remain bullish for the asset.
Featured image from BTCManager, chart from TradingView.com