Ethereum Outpaces Rival Bitcoin and Dogecoin in Massive Rally, Analysts Predict Reversal

• Ethereum, the second largest cryptocurrency by market cap eclipsing Bitcoin and Dogecoin, posted a 10.4% gain overnight.
• Analysts have predicted a correction in the Ethereum price before the altcoin rises to the $1,600 level.
• The twisting narrative, where Ethereum’s market cap exceeds Bitcoin’s, became relevant again, advocates are waiting for ETH’s big move.

The Ethereum price posted a nearly 13% overnight gain for holders, leaving Bitcoin, Dogecoin and other altcoins to bite the dust. Analysts believe that the narrative of Ethereum’s market cap exceeding Bitcoin’s has become relevant. Adherents await Ethereum’s big move as the altcoin prepares to topple Bitcoin.

Also read: Bitcoin Price: Will BTC Break $28,500 After Record Low Volatility Period?

Reversal on the horizon as Ethereum surpasses Bitcoin in massive rally

Bitcoin’s price volatility hit historic lows this past week. The largest asset by market capitalization bit the dust as rival altcoin Ethereum delivered massive overnight gains for its owners. The Ethereum price briefly touched the $1,500 level on October 26, and the second largest cryptocurrency is up 18.4% in the past week.

Advocates have attributed Ethereum’s setback to broader market conditions. American stock market indices have recovered, for the third day in a row there is growth in the S&P 500 and Nasdaq. Since the crypto market has a high correlation with the US stock market, Ethereum’s mining is considered related to the same.

Open interest for Ethereum increased dramatically on October 25th. Open interest is defined as the amount of open positions (including both long and short positions) currently on a derivatives exchange’s ETH-USD trading pair. It is considered a key indicator of the Ethereum price trend.

Another key factor in Ethereum’s price rise is the altcoin’s supply. Based on data from the platform Ultrasound money, Ethereum’s total supply has increased by 13,086 tokens in 23 days. With increasing on-chain activity and Ethereum’s monetary policy becoming deflationary, the altcoin’s total supply is closer to what it used to be on September 15th.

Analysts predict correction before Ethereum’s price reaches $1,600

Michaël van de Poppe, cryptoanalyst and trader believes Ethereum is poised to make a massive move. The analyst was quoted as saying:

Great grab at $1320 inducing continuation towards $1500. [Ethereum] will turn around [Bitcoin] this cycle, but now is not the time to chase. Looking for some healthy corrections to play the next move to $1600.

The analyst has predicted Ethereum price rally to the $1,600 level following a correction in the altcoin.