Samson Mo, a prominent Bitcoin supporter and CEO of Jan3, predicts that Ethereum investors will once again convert their profits back to Bitcoin once ETH reaches high levels.
Mo believes that this scenario could reverse the recent five-week uptrend in Ethereum's price, although some historical indicators may suggest otherwise.
Mo explained that many Ethereum holders originally own large amounts of Bitcoin since the initial offering or internal positions, and they often convert part of their Bitcoin to Ethereum to support it through new narratives related to companies and treasuries. However, he believes they will sell ETH when its price reaches an attractive level for profit-taking, then return to investing in Bitcoin, considering that "no one wants Ethereum in the long run."
He noted that surpassing Ethereum's all-time high would be difficult due to psychological pressures and selling motivations that increase as it approaches this peak, describing it as a "long-term holder's dilemma."
ETH/BTC ratio breaks the downtrend
Mo confirmed that Bitcoin supporters need not worry about the rise in the ETH/BTC ratio, as Ethereum – according to him – has always been merely a tool to increase Bitcoin holdings.
Currently, this ratio is 0.036, which is double its lowest level in over five years (0.018 last April) after Ethereum's price increased while Bitcoin remained relatively stable.
In contrast, Ethereum advocate Anthony Sassano described Mo's statements as an "old-fashioned" way to criticize Ethereum, viewing them as a positive signal for the currency's performance.
Capital cycle towards alternative currencies
On his part, investor Ted Biloz offered a different perspective, expecting Ethereum to hit a new peak that would trigger a small altcoin season, then the funds would return to Bitcoin until it reaches about $140,000, before heading back to Ethereum and other altcoins.
Biloz sees this as consistent with the traditional pattern of market cycles in previous bull periods, where Ethereum and alternative currencies peak after Bitcoin's peak.
Bitcoin dominance has dropped by about 10% since late June as the flow towards alternative currencies continues.
According to Nick Rock, research director at LVRG Research, Ethereum's strong rise to $4,300 driven by institutional interest contributed to increasing the value locked in decentralized finance protocols, in addition to activating innovative farming and yield strategies.
Highest weekly close since 2021
Ethereum achieved its highest weekly close since November 2021, surpassing $4,300 on Sunday, recording weekly gains of 21%.
The currency is now only about 12% away from its all-time high of $4,878, with positive momentum continuing despite criticism from some Bitcoin supporters.
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