Reported By: Bitcoinist.com
- A trend of underperformance against Bitcoin has plagued Ethereum as of late, which has caused buyers to show signs of capitulation
- Where the ETH trends in the mid-term should depend largely, if not entirely, on whether or not BTC continues rising in isolations
- Bitcoin’s massive rise as of late has not done much to boost altcoins, as many are still showing signs of weakness at the moment
- This weakness has been apparent while looking towards Ethereum and the DeFi ecosystem
- One trader is now noting that ETH could soon buck this trend and begin posting some massive short-term gains
- He notes that ETH may soon put in a higher low against Bitcoin, which will only be invalidated if BTC continues up towards $30,000
Bitcoin has been hampering the growth seen by Ethereum and other altcoins as of late. Its massive rise has been driven by institutional inflows that have yet to spill over into smaller digital assets.
However, one trader believes that this trend will soon shift, with ETH now looking to form a higher low against its Bitcoin trading pair.
He notes that this pattern could mark a long-term shift for the cryptocurrency that will allow for further upside.
Ethereum Struggles to Gain Momentum as Selling Pressure Mounts
At the time of writing, Ethereum is trading down just over 4% at its current price of $610. This is around where it has been trading throughout the past few days.
The selling pressure seen throughout the upper-$600 region has been dire for Ethereum, causing it to post multiple strong rejections.
If this pattern continues, it could lead the crypto to see some serious losses due to the weakness it has created against its Bitcoin trading pair.
Analyst: ETH Likely to Form Long-Term Bottom Against BTC
One analyst explained in a recent tweet that Ethereum could be on the cusp of forming a long-term bottom against Bitcoin.
He spoke about this in a recent tweet, noting that there’s a strong possibility that ETH forms a higher low on its BTC trading pair.
“ETH: Keep in mind this is the monthly chart, but IMO we put in a higher low here and ETH starts to outperform BTC. USD pair looks g, I bought the dip below $600. Coming into a bit of res now, if it pulls back I’ll look to compound. Invalidation on BTC aping way higher ($30k+).”
Image Courtesy of Mayne. Source: ETHBTC on TradingView.
How Ethereum trends against Bitcoin in the near-term should provide some serious insights into where the entire altcoin market will head in the days and weeks to come.
Featured image from Unsplash. Charts from TradingView.