Is PEPE about to surpass Ethereum? The breakout caused traders to quickly sell ETH

Pepecoin has become a top pick among traders, gaining 19% this week, while leading altcoin Ethereum recorded a 1% loss.

The arrival of new pro-crypto SEC Chairman Paul Atkins has boosted risk appetite in the market, and investors are beginning to speculate on which cryptocurrency to buy next.

As Ethereum (ETH) is weak, Pepe coin is absorbing a large amount of retail liquidity, and the momentum is clearly on the side of PEPE.

Based on the current market value, Pepe would need to increase 56 times to surpass Ethereum. Although there are challenges, it is not impossible if we look at it from the perspective of long-term potential.

The latest data from Santiment shows that the supply of Pepe held on exchanges has fallen sharply from 45% in November last year to 28.9% today. This shift to self-custody shows that long-term holders are gaining confidence.

In addition, the holdings of whale addresses have increased from 116 trillion to 150 trillion.

This accumulation pattern is often an early sign of a broader rally. Big players tend to act before the masses, and their increased interest in Pepe further reinforces bullish expectations.

According to analysis on the TradingView platform, the current descending channel breakout is similar to the trend from May to September 2024, which may trigger a new round of upward movement.

The pattern that triggered PEPE’s all-time high in late 2024 is reappearing, paving the way for a potentially explosive rally.

Two clear higher highs and lower lows form what appears to be a reversal structure and aligns with a long-term support zone that has formed lows since mid-2024.

A higher low is now beginning to form – a precursor to bullish continuation inferred from past price action.

Momentum indicators also support this view: the MACD line is about to cross the signal line upwards, forming a "golden cross", while the weekly RSI (Relative Strength Index) is rising to 43, gradually approaching the neutral point.

This is a plausible scenario: the MACD is about to complete a golden cross, while the RSI is gradually approaching the neutral zone of 50 on the weekly chart, indicating that market momentum is increasing.

The analysis points out that there is a strong resonance with the Fibonacci extension level, and the 1.618 extension level suggests that PEPE has the potential to rise by 480%, with a target price of $0.0000426.

The more aggressive 2.618 extension, on the other hand, points to gains of up to 800% with a potential price target of $0.00006575 – which could be achieved by the end of 2025.