This year, Ethereum (ETH) has been notably underperforming in comparison to Bitcoin (BTC), with its year-to-date gains lagging roughly 20% behind the leading cryptocurrency.
Nonetheless, a potential shift in circumstances offers a glimmer of hope. As market dynamics evolve and new developments emerge, Ethereum’s trajectory may be poised for a transformation, according to crypto market experts.
In fact, ETH is a ‘ticking bomb,’ Glassnode co-founder known as Negentropic said on Twitter on August 3. The crypto guru acknowledged short-term risks for Ethereum; however, in the medium term, he sees the cryptocurrency as a golden opportunity.
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Time to shift from BTC to altcoins
According to Negentropic, the ETH/BTC chart signals that better days may be coming for alternative assets, advising traders to make the shift.
“According to the ETHBTC trading pair, it’s time to shift from BTC to altcoins.”
– Negentropic wrote.
While Bitcoin may show strength in the short run, the expert explained, Ethereum is “gearing up for a spectacular run!”
His analysis of the ETH/BTC shows that the pair has been inking a series of lower highs since, and currently stands close to a 1-year low. This could serve as a potential reversal signal for Ethereum, and a possible breakout may be on the horizon.
The Ethereum to Bitcoin pair, often denoted as ETH/BTC, represents the exchange rate between ETH and BTC. In other words, it shows how many units of Bitcoin are needed to buy one unit of Ethereum.
When ETH/BTC is trading low, it means that Ethereum’s value is relatively weaker compared to Bitcoin, and it takes fewer units of Bitcoin to acquire one unit of Ethereum. This situation might indicate that Ethereum is underperforming or facing weaker demand compared to Bitcoin in the market.
Ethereum price analysis
At the time of publication on August 4, ETH was changing hands at $1,835, up 0.36% in the past 24 hours.
On a weekly chart, the crypto token is down more than 1.3% and over 5% on the month, similar to Bitcoin’s 30-day drop.
Year-to-date, Ethereum gained around 53%, while BTC surged 75%.
Another metric that may suggest a resurgence in ETH is the recent growth in the blockchain network. Notably, the number of Ethereum addresses soared to 450,000 at the end of July, hitting the highest level in 2 years.
The blockchain witnessed 80,000 new address additions at the end of last month, according to Santiment data.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
