Cryptocurrencies are volatile assets 📉📈, but historical analysis shows that there is a strong correlation between Bitcoin ($BTC) and Ethereum ($ETH). Recently, there has been talk that Ethereum could reach $4,500 or more when Bitcoin hits $90,000, and perhaps $5,000 when Bitcoin crosses $100,000 💸. But why is Ethereum currently undervalued, despite these predictions? 🧐🔍
$ETH/$BTC ratio at all-time low
Currently, the $ETH/$BTC ratio is hovering around 0.04, a record low 📊, which raises questions about Ethereum’s future ability to appreciate relative to Bitcoin. During the 2017/2021 bull market, this ratio peaked at levels between 0.08 and 0.12 🔼📅. If this bullish cycle repeats, we could see a sharp increase in Ethereum’s value relative to Bitcoin in the future ⚡💥.
Ethereum expected recovery
It is worth noting that the $ETH/$BTC ratio has started to recover after hitting its lows in October 📅. If these trends continue to improve, we could see Ethereum return to levels above $4,000, and possibly $5,000 if Bitcoin continues to rise 🔝🌟.
The relationship between Bitcoin and Ethereum
Historically, Bitcoin has been the market leader 🥇, while Ethereum often follows its movements 🔄. However, with the volatility of the markets 📉📈, interest is growing in Ethereum as a separate asset with the potential to achieve greater growth in the long term, especially with new trends in the world of decentralized finance (DeFi) and innovations in the network such as the Ethereum 2.0 updates 🔧💡.
Conclusion
If Bitcoin continues to rise as expected 📈, Ethereum is likely to reach levels that may exceed $4,500 and may even reach $5,000 💰🚀. However, the market needs time to correct these ratios ⏳, and the relationship between Bitcoin and Ethereum will remain a major factor in determining the path of both currencies in the near future 🔮🌐.
