Bitcoin

Ethereum vs. Bitcoin: Key Metric Signals ETH as the Winner

Ethereum has recently outpaced Bitcoin in terms of MVRV ratio growth, suggesting a potential price increase in the near future.

Ethereum’s Recent Performance

Over the past week, Ethereum’s price has risen by nearly 3%, even as selling pressure remains high. Unlike most cryptocurrencies experiencing declines, Ethereum [ETH] has diverged from the market trend, showing strength where Bitcoin [BTC] has not. This performance indicates a possible bullish rally for Ethereum.

Ethereum Outshines Bitcoin

Data from CoinMarketCap reveals that Ethereum’s bulls have been active, driving the token’s price upward. As of now, ETH is trading at $3,575.26 with a market capitalization exceeding $437 billion.

Prominent crypto analyst Ki Young Ju highlighted this trend in a recent tweet, noting the rising MVRV ratio for ETH. This increase suggests that Ethereum’s market value is growing relative to its on-chain fundamentals, surpassing Bitcoin in MVRV ratio growth. The tweet also mentioned that the current ETF situation might favor Ethereum exclusively. Historically, a surge in ETH has often led other altcoins to follow suit.

Potential for a Bull Rally

Given the data indicating a bullish trend for Ethereum, we conducted an analysis of its on-chain metrics. According to CryptoQuant, ETH’s net deposits on exchanges are high compared to the last seven days’ average, indicating persistent selling pressure. Additionally, the Coinbase premium is negative, reflecting a dominant selling sentiment among US investors. However, the Korea premium remains positive, suggesting strong buying interest from Korean investors.

Several technical indicators also support a bullish outlook for Ethereum. The MACD shows potential for a bullish crossover, while the Relative Strength Index (RSI) has ticked upwards to a neutral position. The Chaikin Money Flow (CMF) is also moving north, pointing towards a likely price increase.

Our analysis suggests that ETH might first target $3,660, where increased liquidation could lead to short-term price corrections. A successful breakout above this level could propel ETH to $3,800. Conversely, if bearish trends prevail, ETH might drop to $3,280 this week.

Etan Hunt

Bitcoin Maximalist and Toxic to our banking and monetary system. Separation of money and state is necessary just like the separation of religion and state in the past.

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