Ether, which is the second-largest cryptocurrency in terms of market value, has dropped by 18% compared to Bitcoin during the past six weeks. However, investors caution against dismissing this digital asset often referred to as “the global computer.
As a researcher delving into the realm of cryptocurrencies, I firmly believe that adopting a bearish stance towards Ethereum at this moment is an error in judgment. This perspective was shared by Merlijin The Trader in a recent post addressed to his 378,200 followers on January 16th.
Ether’s momentum is ‘undeniable’
“The momentum is undeniable, and the next move is coming,” Merlijin said.
Currently, as of release, the comparison between Ether (ETH) and Bitcoin (BTC), indicating Ether’s relative power against Bitcoin, stands at 0.0332 according to TradingView statistics. Since December 5, when Bitcoin hit an all-time high of $100,000 for the first time ever, this ratio has decreased by approximately 17.5%.
In March 2021, during a previous bull market phase, the Ethereum (ETH) to Bitcoin (BTC) ratio hit approximately 0.03. Just two months later, it spiked up to around 0.077. This increase in that ratio coincided with Ether’s price surge by 110%, peaking at $3,817 during the same period.
Ether may benefit from Bitcoin’s wider adoption
As a crypto investor, I’ve noticed that while many are speculating about how the incoming U.S. President might impact Bitcoin, there’s also a growing buzz surrounding Ethereum. This is because Ethereum may potentially gain secondary advantages due to the broader acceptance of Bitcoin. In other words, as Bitcoin grows in popularity, it could unintentionally boost Ethereum too.
According to Thomas Fahrer, one of Apollo’s co-founders, if the Strategic Bitcoin Reserve is launched following Trump’s inauguration, it could potentially drive the value of Bitcoin up to a million dollars during this phase. Moreover, he suggested that such an event would also be favorable for Ether, with prices potentially reaching $4,000.
In December, Ether momentarily touched the $4,000 mark once more, a significant threshold that it had to surpass in order to attempt reaching its previous peak of $4,878 from November 2021.
Nevertheless, it didn’t maintain its position and subsequently fell beneath another crucial support level at $3,500, currently trading at $3,365.
Currently, Bitcoin has surpassed $100,000 again, now trading at $100,947. It has fluctuated above and below this price point multiple times since hitting it initially in December.
Certain analysts have expressed apprehension that the Ethereum Merge is not unfolding as anticipated by market participants.
In a January 16th post on X, financial analyst Rajat Soni stated that Ethereum was expected to become deflationary following the Merge in September 2022. Contrarily, Soni noted that the supply of Ethereum is nearly returned to its pre-Merge levels.
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2025-01-17 08:45