CoinDesk 20 Index: 3,653.69 +2.5%
Bitcoin (BTC): $94,888.67 -2.41%
Ether (ETH): $3,591.15 -3.2%
S&P 500: 6,032.38 +0.56%
Gold: $2,640.99 -0.39%
Nikkei 225: 38,513.02 +0.8%

Bitcoin is starting the week on a despondent note, trading 2% lower at $95,000 amid risk-off sentiment in traditional markets. European stocks are falling and the euro is diving against the dollar as concern the French government is on the verge of collapse pushes its bond yields to levels matching those of debt-ridden Greece. BTC's decline follows a failed attempt to break through the multimillion-dollar wall of sell orders near $100,000 over the weekend and MicroStrategy's Michael Saylor's bitcoin presentation to Microsoft. Still, bulls shouldn't lose hope just yet, because the supply scarcity is real, with nearly 75% of bitcoin classified as illiquid and less than 14% in centralized exchanges, according to Andre Dragosch of Bitwise.

Spot ether ETFs in the U.S. saw record daily inflows on Friday, another sign that the second-largest cryptocurrency is gaining momentum as a catch-up trade after vastly underperforming BTC this year. The nine products combined booked $332.9 million in net inflows during Friday's shortened trading session, data compiled by Farside Investors shows. BlackRock's iShares Ethereum Trust (ETHA) and Fidelity Ethereum Fund (FETH) led, attracting $250 million and $79 million in fresh funds, respectively. Friday was the fifth consecutive session with net inflows for the group and concluded the second-strongest week, with $455 million in net inflows, SoSoValue data show. It was a shorter week because U.S. traditional markets were closed for Thanksgiving on Thursday.

ETH has underperformed BTC year-to-date, but ETH ETF inflows have inflected, suggesting this period of underperformance may be over, broker Bernstein said in a research report on Monday. The broker noted that on Friday Blackrock's spot ether ETF saw inflows of $250 million, versus only $137 million of inflows for the asset manager's larger spot bitcoin ETF. "This creates favorable demand-supply dynamics for ETH," analysts led by Gautam Chhugani wrote. Staking yields could be another tailwind for the cryptocurrency. Bernstein noted that initial ether spot ETF applications did not include yields due to regulatory limitations. "Under a new Trump 2.0 crypto-friendly SEC, ETH staking yield will likely be approved," the authors wrote, adding that as activity on the Ethereum blockchain increases the yield can grow to 4-5%.

Ethereum has recently been making waves for the right reasons, providing bullish cues to its native token, ether (ETH). Now, the cryptocurrency's price chart reveals a compelling pattern reminiscent of the set-up in bitcoin (BTC) before it chalked out a record rally last month.

Ether's three-line break chart, which filters out day-to-day noise and erratic price movements, shows the cryptocurrency's eight-month corrective trend, characterized by lower highs and lower lows, has ended and the broader uptrend from the October 2023 lows near $1,500 has resumed.

Such breakouts often trigger a bullish cascading effect on price by attracting new buyers and forcing out sellers that restricted price rallies during consolidation.

Bitcoin witnessed a similar breakout in mid-October, signaling a rally to then-record highs above $73,000. BTC has since surged 45% to over $96,000, according to data source TradingView and CoinDesk.

While traders track price patterns to gauge trend strength and changes, they don't always work as intended and fundamental factors can single-handedly make or break trends.

- Omkar Godbole