Potential Price Disparity between Ethereum and Bitcoin May Pave Way for Ethereum Resurgence, Marking First Significant Gap Since 2019
In the crypto world, Ethereum, the digital currency that's been under the pump for the past five months, could be due for a much-needed comeback, experts reckon. After all, May's been a solid month for Ethereum historically, with the coin averaging a near 28% return since 2016, according to data from Coinglass.
Things are looking promising for Ethereum's price gap with Bitcoin narrowing, a situation that CryptoQuant analyzes as a "key signal." In fact, Ethereum's current undervaluation compared to Bitcoin is as scarce as hen's teeth since 2019, according to CryptoQuant. And as history has shown, Ethereum's underperformance has often led to it outshining Bitcoin. But it ain't all sunshine and rainbows, as supply pressure, weak demand, and flat activity could throw a wrench in the works and cap Ethereum's rebound.
Still, the market's got its opinions divided on what's next. Some think insiders would've already started moving if something good were brewing, and the market might see a price surge as a result. But the idea of over-the-counter deals isn't completely off the table either.
As for Ethereum crashing, well, it's looking grim in the short term, with the Ethereum Foundation pushing on with long-term improvements like the Pectra upgrade. This update is set to make decentralized apps feel like traditional apps, as Artemiy Parshakov, vice president of institutions at staking infrastructure provider P2P.org, put it. The Pectra upgrade's account abstraction feature opens up possibilities that were previously unimaginable.
Claiming that the Pectra upgrade could shift the market's tempo, Tracy Jin, COO of MEXC, points out that with Bitcoin staying near a yearly high of 63.9% dominance and most altcoins failing to find their footing beyond hype-fueled spikes, the update presents a golden opportunity for altcoins to snag the spotlight.
However, Ethereum's hoisted at the $1,850 resistance zone, and volume's drying up, so it ain't all smooth sailing ahead. Nevertheless, Ethereum's price history and current undervaluation make a compelling argument for some spectacular fireworks in the months to come. So buckle up, crypto enthusiasts—it's gonna be a wild ride!
- The narrowing price gap between Ethereum and Bitcoin, analyzed as a "key signal" by CryptoQuant, suggests a potential comeback for Ethereum.
- Ethereum's current undervaluation compared to Bitcoin is rare since 2019, according to CryptoQuant, implying a potential reversal of Ethereum's underperformance.
- Ethereum's historical data from Coinglass shows it averaging a near 28% return in May, indicating a positive trend for the cryptocurrency.
- Despite the narrowing price gap, supply pressure, weak demand, and flat activity could Cap Ethereum's rebound, potentially hindering its short-term growth.
- Some market experts believe that if something good were brewing, insiders would've already started moving, suggesting a potential price surge.
6.On the other hand, the possibility of over-the-counter deals hasn't been ruled out entirely.
- The Pectra upgrade for Ethereum, set to make decentralized apps feel like traditional apps, could shift the market's tempo, presenting a golden opportunity for altcoins like Tron and XRP to gain attention.
- Despite Ethereum being held at the $1,850 resistance zone and experiencing dwindling volume, its price history and current undervaluation suggest that it could deliver "spectacular fireworks" in the upcoming months.
