Ethereum is outperforming the rest of the crypto market at the moment in a rare move that has added 3.2% on the day while total capitalization has declined.
The asset has hit $2,700 twice in the past week, the most recent in late trading on Tuesday, but it found resistance there both times.
Crypto traders and analysts are well aware that ETH movements often precede the rest of the altcoins and can be a catalyst for altseason .
Ethereum Dominance Holding
“Ethereum dominance is showcasing initial signs of trying to hold the ~9% level as support,” observed analyst ‘Rekt Capital’, who predicted that ETH may become more market dominant in June if it can continue to hold this level.
According to Market Prophit, Ethereum’s “crowd sentiment” has also flipped to bullish after months in the doldrums. The asset has now almost doubled since its dump to $1,400 in early April, but it has a long way to go yet.
Meanwhile, analyst ‘Moustache’ observed that ETH has reclaimed the mid-line in the two-week Gaussian Channel.
“Each time it managed to do so, strong rallies followed for the entire altcoin market,” they said, citing 2021 and 2024 as examples.
“Altseason isn’t just a meme… It’s coming, ladies and gentlemen.”
On the fundamental side, a company called SharpLink Gaming announced a $425 million strategic Ethereum reserve strategy on May 27, further boosting sentiment. The firm has partnered with Ethereum solutions provider ConsenSys as lead investor and strategic advisor.
Analysts remain confident that an ETH breakout is imminent, even though retail has been largely absent from its recent rally.
The asset was trading at $2,642 at the time of writing and needs to overcome resistance at $2,700 to have any chance of seeing $3,000 again soon.
BlackRock Adds $32M
Meanwhile, institutions are still hungry for the asset as BlackRock’s spot Ether ETF scooped up more than $32 million worth on May 27.
The BlackRock ETHA fund has not seen an outflow for 13 consecutive trading days and has seen around $170 million in ETH inflows over the past week.
It has cumulatively accrued $4.4 billion worth of ETH inflows for the fund, dwarfing its rivals, according to Farside Investors.
