Ethereum has risen 20% in the past week and reached an all-time high of $4,891.70, but Bitcoin expert Samson Mow warns that this rally will trigger a sell-off as investors shift profits back to Bitcoin. Mow wrote on X that "no one wants ETH for the long term" and predicts a cycle of "pump and dump."
He said: “When they reach a high enough price, they will sell off ETH, creating new generation holders, then reinvest the profits back into BTC.” The price of ETH has increased nearly 1% in the past 24 hours and is trading at $4,267 as of 5:50 AM EST, nearly 13% lower than the all-time high set on November 16, 2021.
Ethereum Is Always a Means to Buy More Bitcoin, Mow Says
Mow doubts Ethereum can break the ATH due to increased selling pressure. He argues that it will be "challenging for ETH to break the ATH" as "selling pressure" intensifies when prices rise.
He calls this a form of “The Dilemma of the Cash Holder,” similar to the Prisoner's Dilemma but focused on whether to sell or HOLD ETH.
Data from CoinMarketCap shows that BTC's dominance in the market has dropped from 63.8% to 59.9% in the past week. This indicates that capital is shifting from Bitcoin to smaller-cap altcoins that investors may feel have higher growth potential.
Although BTC's dominance has decreased, Mow still dismisses the recent drop in the ETH/BTC ratio, which is a measure of ETH's price against BTC, leading to a decline below the downward trendline.
“Ethereum has always been a tool for people to earn more Bitcoin,” he said. “That was true with ICOs, and it is still true now.” BTC has outperformed ETH in the past 24 hours, rising over 3% to return above $122,000.