The second-largest cryptocurrency by market capitalization Ethereum (ETH) has been significantly underperforming Bitcoin (BTC) so far this year, but new analysis suggests ETH could now surge to surpass its previous all-time high and catch up.

According to a chart shared by popular cryptocurrency analyst Ali Martinez, Ethereum managed to hold onto its $2,400 support level and “now might target the channel’s upward boundary around $6,000.”

The chart Martinez shared on the microblogging platform X (formerly known as Twitter) with his over 76,000 followers shows ETH is moving within a defined channel, with its upper level around $6,000 as the cryptocurrency moves upward within it.

#Ethereum $ETH has held the $2,400 support level and now might target the channel's upper boundary around $6,000! https://t.co/JecnkOercu pic.twitter.com/R3tss1tFLa — Ali (@ali_charts) October 29, 2024

As CryptoGlobe reported, the amount of ETH being held on cryptocurrency exchanges has recently plunged by around $750 million after massive withdrawals of the second-largest cryptocurrency by market capitalization from these platforms.

A smaller supply of Ethereum on cryptocurrency exchanges is often interpreted as a bullish sign, as if demand remains steady or rises it could lead to price rises. Often, funds are moved off of exchanges so holders can custody their own funds to keep them for the long-term.

Ethereum holders may also move their funds off of exchanges to stake their funds on the network in a bid to earn a yield on their holdings through the network’s Proof-of-Stake consensus mechanism.

ETH has been notable underperforming BTC, with the flagship cryptocurrency moving up 109% over the last twelve months, compared to Ethereum’s 47.5% rise over the same period, according to CryptoCompare data.

Source: CryptoCompare

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