The price of Ether (ETH), the native cryptocurrency of the Ethereum blockchain network, achieved a new all-fourth dimension high on January. 25.

At the same time, technical analysis shows that the ETH/BTC pair is breaking out of its multiyear downtrend, striking the highest levels since September 2019, which should exist smashing news for altcoins in full general.

ETH/BTC weekly candle chart (Coinbase). Source: Tradingview

The higher highs come less than a calendar week after ETH/USD finally broke its best loftier, surpassing $ane,400 for the first fourth dimension in iii years.

Customs sentiment is extremely positive

The sentiment around Ethereum has become significantly positive sinc ETH managed to break its previous record price prepare in Jan 2018.

Anthony Sassano, a long-fourth dimension Ethereum investor and the caput of marketing at Set Protocol, said that the rally is representative of the groundwork accomplished past developers in the Ethereum ecosystem throughout the by three years.

ETH and BTC yr-to-appointment performance. Source: Digital Avails Data

Throughout the 2019 conduct cycle, ETH was striking the hardest among other large-cap cryptocurrencies. It consistently underperformed confronting BTC, struggling to proceeds upside momentum.

Only the newfound momentum as a result of the rise need for decentralized finance has allowed ETH to outperform Bitcoin in the recent bull bike. Sassano said:

"This may be difficult to believe merely the primary reason I get and so giddy nearly $ETH going up in price is non the profits. It's the fact that and then many defended Ethereum customs members spent three long years building during a brutal bear market. And at present their work is being rewarded."

On-chain data also demonstrates a similar tendency aslope numerous other indicators that suggest the ETH price rally may just be start.

For case, according to researchers at Santiment, the evolution activity on Ethereum has followed a like trajectory equally the cost of ETH.

Ethereum price vs. Github activity. Source: Santiment

This tendency shows that the ongoing ETH rally is led past potent fundamentals and high programmer activity, which makes it more than sustainable. The researchers said:

"Both #Bitcoin and #Ethereum have made respective runs of dominance over one another here in January. Nosotros've just noted that each projects' #Github development action rate is fluctuating closely to the corresponding price of $BTC and $ETH."

What happens next?

Following the rally, analysts say that the momentum of ETH and Ethereum's network event shows that it is a baddest asset in the cryptocurrency market.

Alex Saunders, a cryptocurrency investor, said that "nearly agree" most Ethereum's qualities as a baddest asset. He said:

"2 yr ago $ETH fell 90% in 9 months & hitting $80. Most had written it off. Yet here nosotros are at new ATH $1500, information technology's network effects are undeniable & nigh agree it's bluish chip. Love it."
Ethereum weekly price chart. Source: TradingView.com, Alex Saunders

In the foreseeable future, there are two scenarios for ETH. The price of ETH could rally later the CME futures list in February, due to large institutional capital inflows.

On the other hand, ETH could besides run across a pullback after breaking its all-time high every bit the momentum of the ETH/BTC pair cools downward. For example, the pair pulled back on Jan. 21 shortly after Ether bankrupt its all-time loftier against the U.Due south. dollar.

At that place is a case to exist made that the Bitcoin dominance index begins to rebound later a two-calendar month-long altcoin season, which could lead ETH to meet a consolidation stage in the short term.