In 2018 and 2019, cryptocurrency investors were almost solely focused on Bitcoin.
As reported by CryptoSlate previously, a prominent industry data analyst noted that Bitcoin has rallied around 150 percent since Dec. 30, 2018, while the median performance of the top 200 altcoins has actually been negative over that same time frame.
With this in mind, he claimed that the best investment strategy was (and potentially still is) to hold Bitcoin and promising altcoins that have a small market capitalization, and thus, a chance to grow.
Yet this is changing: analysts are starting to see potential in Ethereum, claiming that the cryptocurrency is poised to rally against the market leader as the technical and fundamental picture hints at impending growth.
Ethereum poised to break higher against Bitcoin, analysts say
Alex Fiskum, investment associate at crypto-friendly fund Alice Capital (it funds/runs Token2049), recently shared the below chart to Twitter, showing that he expects for Ethereum to soon break out higher against Bitcoin.
That’s to say, he soon expects one ETH to buy more BTC than it could before.
He noted that the asset is trading in a three-year falling wedge, which is a textbook bullish pattern, while momentum indicators are printing divergences against the trend of Ethereum, suggesting underlying strength:
“ETH/BTC 3-year falling wedge printed with oscillators showing major divergences and upwards momentum.”
It isn’t only Fiskum who expects Ethereum to make moves against Bitcoin in the near future.
Raoul Pal, chief executive of Real Vision and a former executive of the Bitcoin-bearishGoldman Sachs,said after ETH’s extremely positive price action over the past two weeks that he thinks the altcoin will soon outperform the market leader.
“It even looks like Ether will outperform Bitcoin at some point (no position yet). Please remember: No tribal attacks about bitcoin vs ethereum. They are two different things and two different ecosystems.”
Adding to the bull case, Ethereum 2.0 continues to draw ever closer. This is important because the introduction of the blockchain upgrade is believed to be a massive catalyst for ETH’s growth due to it decreasing the incoming supply of ETH while also increasing demand.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at firstname.lastname@example.org