A widely followed crypto analyst is expressing bullish sentiment toward Ethereum (ETH), the second-largest digital asset by market cap. Crypto strategist Michaël van de Poppe tells his 691,900 followers on the social media platform X that Ethereum is ready to spark a run to $3,500, a price it hasn’t seen since April 2022. According to […]
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A widely followed crypto analyst says that Ethereum (ETH) is fast approaching a major turning point that could see it collapse against Bitcoin (BTC). In a new video update, crypto strategist Benjamin Cowen tells his 788,000 YouTube subscribers that the ETH/BTC ratio will reach a “decision time” as soon as early next week. “Decision time […]
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A closely followed crypto strategist warns that Ethereum (ETH) will continue to lag behind the flagship digital asset Bitcoin (BTC). Trader Credible Crypto tells his 353,200 followers on the social media platform X that the Ethereum versus Bitcoin pair (ETH/BTC) is still in a macro downtrend. According to the analyst, the ETH/BTC rally spurred by […]
The post Crypto Analyst Calls for Ethereum To Massively Underperform Against Bitcoin, Says Now Is Not the Time for ETH appeared first on The Daily Hodl.
A widely followed crypto analyst is warning that Ethereum (ETH) will likely underachieve relative to Bitcoin (BTC) for a while. In a new video update, crypto trader Benjamin Cowen tells his 788,000 YouTube subscribers that he believes that Bitcoin dominance (BTC.D) will continue to rise, suggesting that Ethereum will lag behind. BTC.D tracks the percentage […]
The post Analyst Benjamin Cowen Issues Ethereum Alert, Says ETH To Continue Underperforming Against Bitcoin – Here’s Why appeared first on The Daily Hodl.
Bitcoin ETF and halving buzz have boosted BTC's demand compared to Ethereum in recent weeks.
The price of Ethereum's native token, Ether (ETH), is trading around a 15-month low versus Bitcoin (BTC), and the lowest since Ethereum switched to proof-of-stake (PoS).
Will it continue to weaken for the remainder of 2023? Let's take a closer look at the charts.
The ETH/BTC pair dropped to as low as 0.056 BTC earlier this week. In doing so, the pair broke below its 200-week exponential moving average (200-week EMA; the blue wave) near 0.058 BTC, raising downside risks further into 2023.
The 200-week EMA has historically served as a reliable support level for ETH/BTC bulls. For instance, the pair rebounded 75% three months after testing the wave support in July 2022. Conversely, it dropped over 25% after losing the same support in October 2020.
ETH/BTC stares at similar selloff risks in 2023 after losing its 200-week EMA as support. In this case, the next downside target looks to be around its 0.5 Fib line near 0.051 BTC in 2023, down about 9.5% from current price levels.
Conversely, ETH price may rebound toward its 50-week EMA (the red wave) near 0.065 BTC if it reclaims the 200-week EMA as support.
Ethereum's persistent weakness versus Bitcoin is reflected in institutional capital flow data.
For instance, as of Oct. 6, Bitcoin-specific investment funds had attracted $246 million year-to-date (YTD), according to CoinShares. On the other hand, Ethereum funds have lost capital, witnessing outflows worth $104 million in the same period.
The discrepancy is likely due to growing buzz about a potential spot Bitcoin exchange-traded product (ETF) approval in the U.S.
Trade pundits argue that a spot Bitcoin ETF launch will attract $600 billion. In addition, Bitcoin's fourth halving on April 24, 2024, is also acting as a tailwind versus the altcoin market.
Related: Bitcoin price gets new $25K target as SEC decision day boosts GBTC
The halving will reduce the Bitcoin miners' block reward from 6.25 BTC to 3.125 BTC, a bullish case based on historical precedent that cuts new supply in half.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
A bearish Ethereum fractal meets lower network activity as Ether's price struggles to break above $2,000.
The price of Ethereum's native token, Ether (ETH), has gained around 35% so far in 2023. But its attempts to break above $2,000, a psychological resistance level, have witnessed strong bearish rejections multiple times.
Let's take a closer looks at the three likely reasons why Ethereum price has failed to decisively retake $2,000 since May 2022.
Ethereum's inability to cross above $2,000 in 2023 resembles the bearish rejection near $425 in 2018-2019.
In both cases, Ether appears to be in a recovery phase while eying close above its 0.236 Fib line of the Fibonacci retracement graph.
In 2018-2019, the 0.236 Fib line was near $425 and was instrumental in limiting Ether's recovery attempts. In 2023, the same line is near $2,000, enforcing itself again as a selling area and, thus, pressuring ETH's price lower.
A strengthening U.S. dollar has dampened demand for Ethereum in recent months, thus reducing its ability to close decisively above $2,000.
The prevailing negative correlation between top cryptocurrencies and the dollar has been the main culprit. In 2023, in particular, the weekly correlation coefficient between Ether and the U.S. dollar index (DXY) has been consistently negative, as shown below.
Meanwhile, Ethereum has largely underperformed Bitcoin in 2023 due to the ongoing spot Bitcoin ETF hype. For instance, the widely-tracked ETH/BTC pair is down 20% year-to-date (YTD).
Additionally, the net capital held by Ethereum-tied investment funds has dropped by $114 million so far in 2023, according to CoinShares' weekly report. In comparison, Bitcoin-based funds have attracted $168 million in the same period.
Related: Time to ‘pull the brakes’ on Ethereum and rotate back to Bitcoin: K33 report
The total-value-locked (TVL) across the Ethereum ecosystem has dropped from 18.41 million ETH to 12.79 million ETH so far in 2023. That underscores a reduced availability of funds, resulting in lower yields for investors, as JP Morgan analysts also warned recently.
The declining TVL has accompanied a drop in the Ethereum network's gas fees, which reached a yearly low on Oct. 5.
#Ethereum's network has been particularly cheap to use, and this week's average fee level of $1.13 is the lowest since November, 2022. Though not a perfect signal by any means, lower $ETH costs generally lead to a rise in utility and price rebound. https://t.co/ymXFwGJh49 pic.twitter.com/PEGpXMmZ3q
— Santiment (@santimentfeed) October 4, 2023
Ethereum's NFT volumes and unique active wallets have also dropped by 30% and 16.5% in the last 30 days, according to Dapp Radar.
That includes declines in the key metrics of popular apps, including decentralized exchange Uniswap V2, DEX aggregator 1inch Network, Ethereum staking provider Lido, and others.
Ethereum price technicals meanwhile show a potential rebound toward its 50-day exponential moving average (50-day EMA; the red wave) near $1,665.
However, looking broadly, ETH/USD has been paining a bearish continuation pattern called an ascending triangle.
As a result, a break below the triangle's lower trendline risks crashing the price by as much as the pattern's maximum height. In this case, ETH's price can drop to $1,465 and $1,560 in October 2023, depending on the breakdown point.
Short-term, a break above the 50-day EMA could have ETH's price rise toward the triangle's upper trendline near $1,730 in October 2023, coinciding with the 200-day EMA (the blue wave).
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
A top trader who nailed Bitcoin’s (BTC) bottom last year says Ethereum (ETH) may see a deep devaluation before carving out a cycle bottom. In a new episode of the TechnicalRoundup, crypto analyst DonAlt tells his 53,300 YouTube subscribers that Ethereum may be on the verge of breaking down against Bitcoin (ETH/BTC). According to the […]
The post Trader Who Called 2022 Bitcoin Bottom Warns of ‘Major Pain’ Coming for Ethereum – Here’s Downside Target appeared first on The Daily Hodl.
Widely followed crypto analyst Benjamin Cowen is warning of a possible Ethereum (ETH) collapse relative to Bitcoin (BTC) as the altcoin markets continue to flash signs of weakness. In a new strategy session, Cowen tells his 783,000 YouTube subscribers that the ETH/BTC pair could drop more than 45% from its current value of 0.066 BTC, […]
The post Benjamin Cowen Predicts Collapse in Ethereum (ETH) Against Bitcoin (BTC) – Here’s His Outlook appeared first on The Daily Hodl.
Cryptocurrency strategist Benjamin Cowen is weighing in on the potential performance of Ethereum (ETH) relative to Bitcoin (BTC) going forward. In a new YouTube video, Cowen tells his 783,000 subscribers that the Bitcoin dominance chart (BTC.D), which tracks how much of the total crypto market capitalization belongs to BTC, appears to be on a strong […]
The post Is Ethereum Ready To Outperform Bitcoin? Top Analyst Benjamin Cowen Updates ETH/BTC Outlook appeared first on The Daily Hodl.
Institutional investors accumulated Ether and sold off Bitcoin last week, suggesting confidence in Ethereum after the Shapella hard fork.
The price of Ethereum's Ether (ETH) token has retreated from its recovery trend versus Bitcoin (BTC) while making a series of lower highs in April.
As of April 24, the ETH/BTC pair was down about 5.5% from its local high of 0.0709 BTC six days ago. The same period witnessed Ether declining nearly 15% and Bitcoin dropping 11.25% in U.S. dollar terms.
For now, ETH holds above its 50-day exponential moving average (50-day EMA; the red wave) near 0.0672 BTC. But if the March 2023 fractal is any indication, Ethereum's price could drop sharply below the support wave.
The ETH/BTC pair saw a pullback trend in March after testing the 200-day EMA (the blue wave), breaking below its 50-day EMA in the process.
If the fractal plays out similarly in April, the downside target is 0.0627 BTC by the month's end, about 7% lower than the current levels, and a level that served as major support in March and April.
This target also coincides with Ether's long-term ascending trendline support — the "buy zone" in the chart below — that has been capping its bearish attempts since June 2022.
Interestingly, Ethereum's underperformance versus Bitcoin was counter to institutional flows for the past week.
Ethereum funds attracted $17 million to their coffers in the week ending April 21 versus Bitcoin's $53.1 million outflow, according to CoinShares' latest report.
"These inflows suggest there is increasing confidence amongst investors following the successful implementation of the Shapella upgrade," James Butterfill, head of research at CoinShares, noted, adding that they "were solely from Europe."
Related: Ethereum up 20% in April while Markets Pro sees 379% gain in one day
As for Bitcoin, the outflow began around April 14 when the coin reached $30,000, a psychological resistance level. Butterfill said the BTC's drop to below $27,500 resulted from profit-taking in the absence of macroeconomic triggers.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
