Ethereum has just created the strongest bullish candle compared to Bitcoin in recent times.
Is ETH ready to take the spotlight from BTC?
Ethereum [ETH] is making a strong comeback — no longer a whisper, but a resounding roar.
Gone are the days of being overshadowed and undervalued, Ethereum has broken above the $1,800 mark, attracting the attention of investors seeking deep value and momentum.
But this may not just be a temporary price increase.
According to CryptoQuant, similar breakouts in the ETH/BTC pair have historically preceded Ethereum's strongest market cycles.
So, is this the final breakthrough that flips the ETH/BTC scenario once and for all?
Everything is rising, but Ethereum is leading the way.
The cryptocurrency market has surged as capital flows into risk assets, pushing the total market capitalization up 5.67% to $3.27 trillion at the time of writing.
While Bitcoin [BTC] initially took the spotlight by returning to the $100,000 mark, the real pivot occurred when this growth phase shifted to Ethereum's much-anticipated revival.
This is evident in the 1D ETH/BTC chart, where a 14.46% jump in one day provided the necessary momentum for Ethereum's race, capturing the market's attention.
More importantly, this shift is supported by a significant change in relative valuation. Currently, ETH is trading below its historical value compared to BTC – the first time this has happened since 2019.
Source: CryptoQuant
This level is notable because when the MVRV (Market Value to Realized Value) ETH/BTC ratio is this low, Ethereum tends to outperform Bitcoin.
With the current ratio at 0.37, much lower than 1, this signals a potential opportunity for Ethereum to 'catch up' with Bitcoin's price action.
2019 Cycle: A template for the next step of ETH
In 2019, Ethereum faced a similar situation – lagging behind Bitcoin for a long time. However, the subsequent recovery was even more remarkable.
By mid-Q1 2020, the ETH/BTC MVRV ratio had risen to 0.60. This marked the beginning of a strong recovery for Ethereum.
Ethereum surged to 462% by the end of the year, far outpacing Bitcoin with a gain of 247%.
Currently, with institutional capital flowing in, liquidity pouring into the derivatives market, and the ETH/BTC pair in the green, Ethereum is poised to break through the $2,500 resistance area.
Source: TradingView (ETH/BTC)
The context seems to repeat similarly to the 2019 cycle, thus Ethereum is positioned to potentially replicate a strong breakout in its race with BTC during this market cycle.
Source: https://tintucbitcoin.com/ethereum-tang-20-dat-ty-le-btc-thap-nhat-tu-2019/
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