🐳 Weekly Edition: ETH Breaks All-Time High For First Time in 4 Years

For the first time in 1400 days, Ethereum has officially made a new all-time high after rallying 14% in a matter of hours to over $4,800. Onchain data shows over $280M in ETH short positions were liquidated today, adding fuel to the pump that began after Fed Chairman Jerome Powell’s comments on future rate cuts this morning. As we mentioned in Wednesday’s Beluga Brief, technical analysis can be high reflexive especially when being touted by a public figure; now that Ethereum has risen about 20% from where Bitmine Chairman Tom Lee called the bottom, we should probably expect to see the market to react to his comments in the future. This is a particularly powerful spot for the head of a DAT to be in as at the end of the day, most of what separates these companies from each other (aside from size) is brand value.

Interestingly while Bitcoin did gain some ground today, the pump was relatively muted in comparison to Ethereum. We’ve been saying for a long time that when Bitcoin stalls out and ETH breaks to new all-time highs is likely when we should start to look for altcoin outperformance… is it finally time? My opinion is with Ethereum’s ATH break finally happening after 4 years, we’ll probably continue to see it outperform for the next several weeks. Most of the market is still in disbelief at the run it has had as evidenced by CME leveraged short positions on Ethereum also hitting an ATH this week, so I expect to see it trading much higher in the near future. The job is far from over, and $10k per ETH is still the target.

As ETH makes a new ATH our Public Trading Wallet is back over $175k, a +75% gain from our starting point last year. In addition to Ethereum being our largest position we are also allocated to several coins such as ARB, OP and CRV which stand to benefit greatly from Ethereum’s performance. One interesting thing to note among this group is Arbitrum has rebounded significantly stronger than Optimism, despite OP’s former status as a favorite L2 among the crypto community. While I don’t know for certain, my guess is the market is seeing massive inflows to Arbitrum which it views as capital entering the chain. What many might not realize is that Hyperliquid, the largest onchain perpetuals exchange, uses Arbitrum to bridge user funds onto the exchange. In other words, that capital is going towards gambling on leverage, not buying Arbitrum ecosystem coins. Regardless ARB was due for a repricing, so credit where credit is due.

Capo is likely responsible for tens of thousands of people missing the bull run at this point.