PEPE Coin Surges with Ethereum Rally: Breakout Ahead?

PEPE, one of the largest meme coins by market capitalization, is showing signs of renewed investor attention.

It comes amid a broader Ethereum (ETH) rally, driven by institutional inflows and corporate adoption.

How the Ethereum Surge Could Boost PEPE’s Price

PEPE is the best-performing big meme coin today and this week, with the token showing resilience despite volatile conditions.

Over the last 24 hours, PEPE’s price has surged nearly 10%, effectively outperforming sector peers like Dogecoin (DOGE), Shiba Inu (SHIB), and Bonk Inu (BONK), among others.

The frog-themed meme coin draws positive sentiment from the Ethereum market, with the largest altcoin on market cap metrics currently soaring toward new highs.

Being an Ethereum-based meme coin, capital is overflowing from the ETH market to low-cap tokens on its blockchain, with PEPE attracting the most interest.

Analysts say PEPE is buoyed by Ethereum’s strength following a record-breaking week for ETH ETFs (exchange-traded funds). On August 11, Ethereum ETFs crossed the $1 billion mark in net inflows, with BlackRock’s ETHA leading the charge.

The milestone reflects a notable shift in traditional finance’s (TradFi) perception of Ethereum as an asset with a growing role in decentralized finance (DeFi), Web3 infrastructure, and smart contracts.

This surge in institutional demand has triggered what analysts call an ETH accumulation wave, a trend that could have outsized benefits for Ethereum-based meme coins like PEPE.

According to year-to-date (YTD) data, PEPE has maintained a strong price correlation of 0.76 with Ethereum. This suggests that any significant ETH rally could provide the fuel for a PEPE breakout.

Growing Holder Base Despite Price Pullback

Interestingly, PEPE’s fundamentals have strengthened in 2024 despite its price being cut in half since January. PEPE wallet addresses have grown by 25% this year, signaling sustained retail interest even during downturns.

A technical backdrop also favors the PEPE bulls. Since the start of the year, PEPE has formed a symmetrical triangle pattern, a technical formation or chart pattern often associated with impending price expansion.

Meanwhile, though sentiment is improving, risks remain. On-chain data reveals that the top 10 PEPE wallets control over 37% of the token’s supply. This raises concerns about the potential for price manipulation or sudden sell-offs.

Large holder concentration, such as 94% of TRUMP and MELANIA tokens held by just 40 wallets, is a recurring challenge in meme coin ecosystems. This is because liquidity can quickly vanish if a few big players decide to exit.

With Ethereum’s ETF market heating up and institutional demand building, the stage may be set for PEPE to ride the momentum.

If ETH continues its climb and technical patterns play out, PEPE could see a sharp upside move in the coming weeks.

However, investors must conduct their own research, including watching whale wallet activity, cognizant that sentiment can reverse just as quickly as it surges in meme coin markets.