As Bitcoin Rises, Why is Ethereum Struggling To Catch Up? Analyst Explains
While Bitcoin has faced strong bullish momentum in recent weeks, hitting all-time highs on consecutive days, Ethereum has underperformed and been unable to keep up with Bitcoin’s bullish pace.
Even compared to other crypto assets (altcoins) on the market, Ethereum has failed to achieve a melting surge.
Conversely, when Bitcoin peaked above $93,000, leading the entire cryptocurrency market into a bull run, Ethereum could only surge to $3,396, while BTC broke through multiple resistance levels during the same period to hit new sustained highs.
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So far, ETH is still down about 37.5% from its all-time high of $4,878 three years ago in November 2021. At the time of writing, the asset is facing a correction along with other cryptocurrency markets, including Bitcoin. ETH fell 2.3% in the past dayNow traded in $3,023.
Why is Ethereum struggling to catch up?
Ethereum’s underperformance relative to Bitcoin has caught the attention of market analysts. A key observation comes from a CryptoQuant analyst named Darkfost, who offers a possible view explain Due to the stagnant price of Ethereum.
According to Duck Foster, The taker-to-buy ratio is key indicators considerespecially on the Binance exchange. The ratio is an indicator of short-term market sentiment, and when the ratio remains below 1, it indicates selling pressure is greater than buying interest.
It could also indicate traders are hesitant to accumulate ETH at current levels, which could lead to Lagging value for money.
Duck Foster noted:
Binance’s taker-ask ratio remains bearish as it spent most of the past month below 1. This suggests that traders are more willing to sell than buy ETH, which could explain why ETH is currently underperforming BTC.
Is there still hope for ETH?
Although Ethereum’s gains have struggled to match Bitcoin’s gains, some analysts remain optimistic about Ethereum’s long-term potential.
For example, well-known cryptocurrency analyst Kingpin Crypto once said bullish sentiment As far as the current price level of ETH is concerned. In a recent article about X, Kingpin Crypto suggestion ETH is trading near the $3,000 mark, providing a significant buying opportunity.
$ETH – Buy firmly near the orange line and exit.
I know the BTC pair has been mediocre and it feels like it will only go down forever.
However, let me tell you…
Ethereum will create a new ATH this cycle. pic.twitter.com/T2r2TDmkb7
— Kingpin Crypto (@Kingpincrypto12) November 15, 2024
Likewise, another cryptocurrency analyst Yoddha shared analyze Indicating a potential bullish pattern for Ethereum. According to the chart shared by Yoddha, ETH’s historical price action has typically included a retest phase followed by a sharp surge in value.
Yoddha emphasized that Ethereum may have completed the retesting phase, indicating that strong price increase It could be on the horizon.
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The chart labeled “We Are Here” points out ETH’s current position in the pattern, which means a significant move higher could be imminent.
Featured image created using DALL-E, chart from TradingView
