Investors Shift Focus to Gold and Ether Amid Market Rotation
Gold has surged to a record high of $3,500 per ounce, extending its bullish run as cryptocurrency markets face renewed volatility. The latest rally comes amid reports of large Bitcoin holders (whales) reducing their positions and reallocating capital into Ethereum and traditional safe-haven assets.
Technical charts show XAU/USD hitting $3,486, with intraday highs nearing $3,500, driven by strong buying momentum. The breakout above the previous resistance around $3,440 signals a continuation of the bullish trend, with analysts eyeing the $3,520–$3,540 zone as the next upside target.
“The breakout is significant as gold not only cleared a major resistance zone but is now trading at historical highs,” said BITX senior commodities analyst. “Institutional demand and risk-off sentiment are fueling this rally.”
The move aligns with a higher-high structure visible on the four-hour chart, while support levels remain firm near $3,420 and $3,400.
While gold rallies, Bitcoin’s price action has turned sluggish, failing to break out of key resistance levels. On-chain data suggests major holders are taking profits and reallocating funds into Ethereum and other assets ahead of the next liquidity cycle.
“Ethereum is gaining traction as investors expect strong demand from DeFi and staking markets,” . “The rotation out of BTC into ETH and gold shows a clear diversification trend.”
Analysts warn that BTC dominance is weakening, while Ethereum and commodities like gold are emerging as preferred assets in the current macro environment. If gold sustains above $3,450, the next target could extend toward $3,550, reinforcing its role as a hedge against uncertainty.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.