Ethereum (ETH) continues to impress with its price performance against Bitcoin (BTC) and has now reached a significant milestone. This development is believed to potentially initiate a process of altcoin dominance. Ethereum has outperformed BTC since mid-May, fueled by rumors of the approval of Ethereum ETFs in the United States.
Ethereum’s price saw a noticeable surge following the announcement of approval for the Ethereum Spot ETF. Today, the ETH/BTC pair stands at 0.056, indicating a significant increase on the Ethereum side. Stay updated with the latest technology news on NEWSLINKER.
Meanwhile, Bitcoin has already established strong support at $67,000, but there are discussions in the market about a potential drop to $65,000. On the other hand, Ethereum continues to hover around the $3,800 level due to heightened market activity.
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Analyzing the period after May 15, it is evident that ETH experienced a 30% increase, compared to BTC’s 9% rise. This price performance also reflects in the ETH/BTC ratio, which reached $0.05854 on May 23, the highest level in two weeks, showing a 31% increase.
In an analysis shared by analyst Moustache, it was observed that the ETH/BTC ratio revisited a support trend line that has been tested multiple times over the years. Historical analysis reveals that ETH prices have risen from this line, resulting in increases in altcoin prices.
The ETH/BTC ratio is a key indicator that showcases Ethereum’s performance relative to Bitcoin. Market analysts closely monitor this ratio as it allows for a comparison between the two leading cryptocurrencies in the market.
Despite Bitcoin’s strong performance in recent years, the monthly chart of the ETH/BTC ratio continues to move within a downward channel, indicating an upward trend for Ethereum.
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Renowned market analyst Michaël van de Poppe made significant observations regarding the ETH/BTC weekly chart analysis. He highlighted the upward trend in the relative strength index (RSI), suggesting a reversal in the trend. He also emphasized that if the ratio remains above 0.051, the upward momentum will continue.
Additionally, data provided by Santiment reveals an increase in network activity on the Ethereum blockchain. According to CryptoQuant, the number of unique smart contracts on Ethereum has risen from 37,870 on May 20 to 38,066 on May 31, indicating growing interest.
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Disclaimer: The information in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks. It is recommended to conduct thorough research before making any investment decisions.
