The market finally exhaled, Ethereum turned 11: The question is whether it can hold its breath again

The crypto market experienced a brief respite, with Ethereum marking its 11th anniversary, leading to increased interest and purchases. Ethereum and Solana dominated social media discussions, and the timing was not coincidental. The anniversary generated genuine bullish energy across trading communities, resulting in real purchasing activity rather than manufactured hype.

Capital began shifting towards core protocol assets, indicating a shift towards a risk-on mentality within the crypto market. This shift was supported by a significant decrease in Bitcoin liquidations, removing a previously existing ceiling that capped upward movement. With lower leverage and forced selling, the market had room to breathe and utilized it effectively.

This advance was not limited to the blockchain world, as traditional markets also rallied, with the Nasdaq, S&P 500, and Dow Jones Industrial Average all climbing. The correlation between digital assets and major stock indices, such as the S&P 500 and Gold, reached 76% and 79%, respectively, confirming the macro-driven rotation. Microsoft and chip stocks also saw significant gains, contributing to the overall rally.

Technical analysis suggests that the total market cap is at the US$2.21 trillion pivot point, with the 23.6% Fibonacci level at US$2.23 trillion and the stronger barrier at the recent swing high of US$2.26 trillion acting as potential obstacles for further growth. Ethereum specifically needs to break through the US$1,975 level to open a path toward US$2,300.

Over the next 24 hours, the expiration of over US$10.5 billion in Bitcoin and Ethereum options could inject significant volatility into the market. While the current climb seems promising, it remains uncertain whether bulls can maintain their confidence through the upcoming hurdles and larger barriers. Overall, the market appeared to exhale after a long period of tension, with favorable conditions for a lasting upward move.