As Bitcoin Rises, Why is Ethereum Struggling To Catch Up? Analyst Explains

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As a seasoned crypto investor with over a decade of experience navigating market cycles and trends, I must admit that Ethereum’s current performance leaves me somewhat perplexed. While I appreciate the bullish momentum that Bitcoin has been exhibiting, it is hard not to notice the disparity between its progress and that of Ethereum.

In the last few weeks, Bitcoin has experienced robust upward trends, repeatedly hitting new record highs. On the other hand, Ethereum hasn’t kept pace, struggling to match Bitcoin’s rapid bullish advancement.

Compared to most other cryptocurrencies available, Ethereum has yet to experience a significant surge that leaves people awestruck.

As Bitcoin soared past $93,000, dominating the crypto market with its bullish momentum, my Ethereum investments could only manage to reach $3,396 during the same time frame when Bitcoin consistently smashed through resistance levels to set new highs.

To date, Ethereum still stands around 37.5% below its previous peak of $4,878, which it reached in November 2021. At the moment, Ethereum, along with Bitcoin and other cryptocurrencies, is experiencing a downturn. Over the past day, Ethereum has dropped by 2.3%, currently valued at approximately $3,023.

Why is Ethereum Struggling to Catch Up?

Market analysts have taken notice of Ethereum’s underachievement compared to Bitcoin, and one intriguing perspective has emerged from an analyst at CryptoQuant named Darkfost. This expert proposes a potential reason behind Ethereum’s pricing plateau.

darkfost states that the taker buy-sell ratio is an essential factor to take into account, especially in relation to the Binance platform. Essentially, this ratio functions as a short-term market sentiment gauge. When the ratio stays below 1, it implies there’s more selling demand than buying interest, suggesting greater pressure to sell.

The current ETH prices might not be attracting much trader interest for accumulation, potentially leading to a slower increase in its market value.

Darkfost noted:

The taker buy-sell ratio on Binance remains bearish, as it has been below 1 most of the time over the past month. This indicates that traders are more willing to sell than buy ETH, which could explain why ETH is currently underperforming compared to BTC.

Is There Still Hope For ETH?

Although Ethereum hasn’t been able to achieve the same level of growth as Bitcoin yet, certain experts are still hopeful about its future prospects.

For example, a well-known crypto analyst, Kingpin Crypto, expressed a bullish sentiment regarding ETH at its current price levels. In a recent post on X, Kingpin Crypto suggested that ETH trading around the $3,000 mark presents a notable buying opportunity.

$ETH – Buy with conviction around the orange line and retire.

I know the BTC pair is underwhelming and feels like it will be down only forever.

However, I am telling you…

Ethereum will make a NEW ATH this cycle.

— Kingpin Crypto (@Kingpincrypto12) November 15, 2024

Just like another cryptocurrency expert, Yoddha, recently posted an analysis suggesting a positive trend for Ethereum. The graph he provided shows that Ethereum’s past price fluctuations typically involve a period of retesting which is then followed by a significant increase in value.

In simpler terms, Yoddha pointed out that Ethereum might have already gone through its second check or test, which indicates a potential surge in prices is imminent.

The label “Here we are” on the chart indicates where Ethereum (ETH) is positioned in this trend right now, suggesting that a substantial increase could occur shortly.

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2024-11-16 19:14