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Ethereum outperformed Bitcoin with a 6% increase, driven by momentum rather than strong new inflows. Ethereum reached an intraday high of $4,254 early Monday as traders rotated into higher-beta assets as the Bitcoin price consolidated.
Ethereum saw a strong surge on Sunday, hinting that its recent price action remains largely momentum-driven, extending its recovery from a low of $3,711 on Oct. 22 into the fifth day.
Ethereum's rise comes amid the broader crypto market recovery, reversing some of the declines that followed this month’s liquidation cascade. At press time, Ethereum traded at $4,171, up 5% daily and 3.70% weekly.
The rise past $4,000 has pushed the ETH price near key resistance at the daily SMA 50 at $4,236, while analysts outlined the potential of it reaching $5,000 and on-chain data pointed to larger wallets adding it.
In a recent tweet, on-chain data analytics firm Santiment stated that "whales and sharks" holding 100-10,000 ETH have added back roughly one-sixth of the coins they sold between Oct. 5 and Oct. 16, describing that as a sign of improving confidence among larger accounts.
Ethereum bull flag in play
Jake Wujastyk, an analyst, noted in a tweet that the Ethereum bull flag pattern remains in play, with 2025 bearing similarities to 2020.
This setup supports a view of a longer road higher, provided resistance gives way and reclaimed levels hold on to subsequent retests.
Short-term resistance en route to $5,000 remains at $4,239, $4,756 and $4,955. On the macroeconomic front, the Federal Reserve will make a decision on interest rates on Oct. 29, which might be a major market mover this week.
On Oct. 28 at 2:53 p.m., Ethereum’s Fusaka hard fork upgrade is expected to launch on the Hoodi testnet.
Denys Serhiichuk
Tomiwabold Olajide