In comparison to bitcoin, and also to many of the altcoins, ethereum has been relatively subdued so far this bull market. However, with a possible Spot Ethereum ETF on the horizon, and signs that $ETH is about to take the spotlight from $BTC, it could be that ethereum’s time has come.
$ETH performance less than spectacular
With bitcoin doing its thing for most of 2023 and now into Q1 of 2024, $ETH has not had much of a look-in. While $BTC recorded gains of 240% since the beginning of 2023, $ETH has done a far less spectacular 144%.
This is also to say nothing of the many altcoins that have far exceeded the gains of either $BTC or $ETH. Those sitting on their $ETH bags with expectations of a similar performance to that of the last crypto bull market may have been left somewhat deflated.
Still the foremost layer 1
The fundamentals for $ETH haven’t changed that much. Yes, some huge improvements have been made, and others are on the way. That said, competitors are leaving $ETH miles behind when it comes to speed, and their transaction fees are ridiculously cheaper.
However, ethereum is still the biggest and most secure layer one for smart contracts, and it will need a simply massive move from the likes of Solana et al to come anywhere close to supplanting it.
$ETH at crucial level against USD
Source: Coingecko/Trading View
Looking at $ETH on the weekly against its USD pairing it can be seen that price has reached the top of an upward leaning channel. Also, resistance is waiting above. It would likely take a very strong amount of buying here to pierce through these obstacles.
Will $ETH succeed in reversing the trend against $BTC
Source: Coingecko/Trading View
That said, if $ETH really wants to lift off, it first needs to start to turn the downward trend of its $BTC pairing. Looking at the daily time frame for ETH/BTC it could be that this is actually starting to happen. Be that as it may, this trend break needs to be backed by a lot more volume.
It would appear then that perhaps $ETH might not be quite ready for its time in the sun just yet. If $BTC were to go into a corrective phase, this would likely put a spanner into the works for $ETH. Although coming out of a decent correction may be the opportune time.
That $ETH makes a strong surge, perhaps even solo, is a likely event at some point. However, should the upcoming ethereum ETF be denied by the SEC for some reason, this would probably put an $ETH domination surge on hold again.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
