Bitcoin Fractal Suggests Ethereum Will Soon See Large Leg Higher
- Bitcoin has strongly outpaced Ethereum in the past month.
- In the past 30 days, BTC has gained approximately 50% as ETH has only rallied by 20-30%.
- Analysts think that this gap will be closed in the months ahead as Ethereum is boosted higher by technical and fundamental trends.
Bitcoin Fractal Analysis Indicates Ethereum to Rally Strongly Next
Bitcoin has strongly outpaced Ethereum in the past month. In the past 30 days, BTC has gained approximately 50% as ETH has only rallied by 20-30%. While that’s far from anything to scoff at, it’s clear that a divergence has formed between the performance of Bitcoin and the performance of altcoins.
Analysts think that this gap will be closed in the months ahead as Ethereum is boosted higher by technical and fundamental trends.
One crypto-asset analyst shared the image below, which shows Bitcoin’s price action over the past few years in relation to Ethereum’s price chart. There has been a divergence as the charts indicate, with ETH trading far below its all-time high relative to Bitcoin.
This analysis suggests that in the weeks and months ahead, ETH will rapidly move higher as it attempts to catch up to Bitcoin.
For context, BTC is around 20% from its all-time high. Ethereum reaching a similar level would mean it would need to recover to at least $1,000, which is over 100% the current price.
There are also signs indicating that Bitcoin dominance could soon fall, which would increase the chance an altcoin rally plays out. Analysts are optimistic that an altcoin rally would especially benefit ETH.
Chart of BTC's price action over the past few years with a fractal analysis to ETH's chart over the same time frame by crypto trader HornHairs. Source: BTCUSD from TradingView.com
Strong ETH Accumulation
Data shows that there is a large amount of Ethereum accumulation that corroborates the bull case mentioned by analysts.
Grayscale reported a strong week for Ethereum institutional purchases earlier this month. The company also recently reported that it now has over $1 billion worth of ETH under management for its clients, which is a rapid uptick from the AUM (ETH) just months ago:
“MILESTONE: Grayscale #Ethereum Trust has just hit $1 billion AUM! As the first publicly-quoted $ETH investment product in the US and the second #digitalcurrency investment product to become an SEC reporting company, we’re proud of the milestones so far.”
Ethereum is set to continue higher as well due to the introduction of ETH2 staking, which incentivizes investors to take positions in the cryptocurrency. ETH2 users can earn a regular yield paid in ETH by running a validator node, which replaces miners on this new chain.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Fractal Suggests Ethereum Will Soon See Large Leg Higher
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Nick Chong, @Khareem Sudlow