The Battle of the Cryptos: Bitcoin vs. Ethereum
The price of Bitcoin has not risen above $20,000 recently, as Ethereum and other altcoins have been taking the lead and driving the market upwards.
The Bitcoin price may be stuck below $20,000 for now, but Ethereum and other altcoins are leading the way upwards. With Ethereum's recent "Bellatrix" upgrade, the final step before "The Merge", the price of Ethereum is skyrocketing. Local resistance is no match for the power of Ethereum and the altcoin market.
At the time of writing, Bitcoin price is trading at $19,900 with sideways movement across the last 24 hours and 7 days respectively. In the meantime, the Ethereum price is trading at $1,670 with a 7% and 8% profit over the same time periods, respectively. Looking at the current market conditions, it seems that Bitcoin is still the dominant player in the cryptocurrency space. However, Ethereum is slowly but surely catching up, with its price increasing at a faster rate than Bitcoin's.
Ethereum could be poised for a breakout while Bitcoin's price lags.
The "Merge" event has caused a lot of hype in the crypto world, as some investors believe that Ethereum will see more improvements and will enter a new era of adoption. I believe that this event will be a positive for Ethereum, and will help to propel the network to new heights.
As the chart below shows, a pseudonym trader outlines Ethereum's current price range and its attempt to break out of overhead resistance. If Ethereum validates this bullish move, the cryptocurrency could achieve another milestone by "flipping" Bitcoin in terms of market capitalization.
Investors are wondering if the recent news of a merger between two major companies will have a positive or negative impact on the stock market. Some believe that this could be a "buy the rumor, sell the news" event, while others are optimistic about the potential for growth. Only time will tell how this news will affect the market.
ETH attempting to break out of a range. The last time it did so it doubled relative to BTC If it doubles again relative to BTC it’ll flip it. Will Bitcoiners let it happen? Or will they mercilessly pump BTC to stop the ratio from getting worse? Or will it all dump for a reset?
Can Ethereum Challenge Bitcoin's Dominance?
The report by QCP Capital suggests that Ethereum prices have been correcting themselves after reaching oversold levels. This is likely due to the liquidation of Three Arrows Capital (3AC). This provides some insight into the recent movements of Ethereum prices and where they may be headed in the future.
It is possible that the recent uptick in Ethereum's price is due more to the fading of selling pressure than to the actual "The Merge" event. There are two potential bullish factors associated with "The Merge": the transition will reduce ETH supply issuance while increasing its burning rate. If these factors play out as expected, it could mean good things for Ethereum's price in the long run.
QCP is bullish on Bitcoin heading into "The Merge," while Ethereum is trending downward. According to QCP, this means that Bitcoin's supply is being burned at a slower rate, while Ethereum's is being burned at a faster rate.
This doesn’t change our view on the long-term viability of ETH, and its consequent bullish impact on price. We think ETH will be THE asset of the decade. However, it does change the short-to-medium-term price dynamics, and how much of the event is already priced in.
It is clear that the Ethereum price is closely linked to the Bitcoin price. As the latter starts to recover from its recent dip, it is likely that Ethereum will follow suit. This could provide ETH's price performance with further support to reclaim its previously lost territory and continue to push the sector up with it. This is positive news for cryptocurrency investors and signals that the market is still very much alive and well.
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