Ethereum is enjoying the bull run of the crypto markets, surging by 39% in just a week. A bull market for crypto was widely anticipated, even without the backdrop of US election drama. The Bitcoin halving cycle had suggested the bull run would begin in the second half of this year, most likely between August and October. Although it started a bit later than expected, the momentum kicked off strongly, fueled in part by the “Trump trade.” The total market capitalization of the crypto market has now approached $3 trillion.
Just yesterday, Ethereum inflows into US ETFs hit a new record, reaching $295 million.
While the crypto market is clearly in bull mode, Bitcoin remains the spearhead of this rally. This has caused Bitcoin dominance to rise, leaving major altcoins like Ethereum lagging behind Bitcoin’s performance, despite Ethereum’s significant gains against the dollar.
The main question on many traders’ minds is: Should I buy Ethereum or Bitcoin?
(ETHBTC Weekly Chart)
In the 2020–2021 bull market cycle, ETH remained relatively weak against Bitcoin until Bitcoin experienced its first correction. During that period, ETH held strong while BTC underwent its correction, leading ETHBTC to rally significantly. The second and largest gain for Ethereum came when BTC reached its cycle top. At that point, many altcoins, including Ethereum—often referred to as the “silver of the crypto markets”—continued making new highs, even as BTC stopped reaching new peaks.
Traders should focus on two key moments: when the mid-cycle correction will occur and when the cycle will reach its top. These insights could help them decide when to allocate more into Ethereum rather than Bitcoin.
(ETHUSD Daily Chart)
Focusing solely on ETHUSD, the breakout above the 2800 resistance level triggered a rapid upward surge. The key target for Ether now lies in the 3500–3700 zone, with 3500 being the main resistance. This level serves as both the target of the 2100–2800 breakout and the previous high from July. The 3500–3700 zone could act as an ideal area for a potential correction. However, attempting to go against the momentum during a bull market might be unwise.
