The crypto market saw a slight rebound on Tuesday, driven by meme coins such as dogwifhat (WIF) and Pepe Coin (PEPE). Meanwhile, the decline in Bitcoin dominance and shift in institutional investors to Ethereum, supported the ETH price to rebound over 4% today. Analysts are bullish on altcoins and believe it is the best time to stack before altcoin season.
Ethereum Price Set for a Landmark Parabolic Run?
While Bitcoin and other crypto rallied, the ETH price continued its downward spiral since hitting a high of $4,106 last December. However, things improved quickly with the Pectra upgrade. Besides, staking adoption and Layer-2 growth convinced institutional investors to rotate capital flow from Bitcoin to Ethereum.
A Messari report revealed that Ethereum has secured $219 billion in total capital as of May 28. It’s the most of any blockchain, including Tron and Solana.
Spot Ethereum ETF net inflows data clearly indicate capital rotation from BTC to ETH. Notably, Ethereum ETFs recorded a $78.2 million net inflow on Monday, as per Farside Investors data. Whereas, spot Bitcoin ETFs saw a net outflow of $267.5 million.
Moreover, the latest crypto funds inflow report by CoinShares showed that Ethereum leads inflows with the strongest run since 2024. At present, institutional and retail investors prefer it over Bitcoin (BTC) and XRP.
Popular analyst Rekt Capital said, ETH price is trying to reclaim $2,500 as support, similar to a parabolic run above $4,000 in mid-2021. The rally to $3,000 looks like the next region of interest for traders.
Analyst Michael van de Poppe identified a hidden bullish divergence on the ETH chart, signaling readiness for a breakout upwards. Other analysts have also noted buying signals for ETH on the ETH/BTC chart.
The ETH price was up over 4% over the last 24 hours, with the price trading at $2,613 at the time of writing. Furthermore, trading volume has increased by 61% in the last 24 hours, indicating a rise in interest among traders.
Meme Coins WIF and PEPE Surge
Meme coins mainly push the crypto market high today, with WIF and PEPE leading the gains in the sector. As they tumbled the most in the recent crypto market crash, today’s rise is because of renewed buying by traders.
Coinglass data revealed massive shorts liquidation in 1000PEPE, DOGE, PEPE, WIF, MOODENG, and others. Notably, $6.3 million in 1000PEPE and $3.25 million in shorts were liquidated, causing the Pepe Coin price to rally over 10%.
WIF price jumped nearly 13%, with the price changing hands at $0.96. The 24-hour low and high are $0.843 and $1.001, respectively.
