What's Happening?
Ethereum has reached a new all-time high above $4,900 before pulling back. Analysts are debating whether a supply shock could fuel the next leg of Ethereum's rally. With fewer coins on exchanges, Ethereum may be gearing up for a bigger run, while Bitcoin lags behind.
Why It's Important?
Ethereum's record high and potential supply shock highlight its strong momentum in the cryptocurrency market. The reduced liquid supply could lead to sharper price movements, attracting attention from traders and investors. Ethereum's ability to push into price discovery with fresh highs indicates its growing influence and potential for further gains.
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What's Next?
Short-term volatility may persist, but the broader trend remains bullish. Analysts suggest that a pullback to retest the breakout zone could strengthen the trend if it holds as support. Traders should remain cautious of weekend moves, which often correct back to their starting point.
