Ether (ETH) to Outperform Bitcoin (BTC)?

Bitcoin has increased its market dominance over Ether in the last few weeks amid optimism about potential near-term approvals of spot Bitcoin Exchange Traded Funds (ETFs) on the US, which are anticipated to attract substantial capital inflows from the traditional finance industry.

After trending lower for most of 2023, with Bitcoin also benefiting from safe-haven demand given its status as crypto’s oldest, most trusted and (arguably) most decentralized cryptocurrency, the ETH/BTC exchange rate fell rapidly in October to hit its lowest levels since June 2022.

But this exchange rate recently rallied back to the north of its 21DMA, a sign of a potential turn around.

Thielen argued in his latest note that Ether trading volumes are also catching up to Bitcoin, which potentially “supports the view that altcoins could outperform”.

“While Bitcoin traded as much as 3x the volume of ETH in mid-October, this ratio has also dropped to just 2x”.

If Thielen is right about a possible near-term surge in the ETH price to $3,000, then ETH/BTC could very well rise back towards resistance in 0.058 area in the near future.

But if Bitcoin continues to lead the broader market rally amid optimism about upcoming spot Bitcoin ETFs, and Ethereum network activity once again falls back, then a retest of the 2022 lows under 0.05. remains on the cards. #BTC🔥🔥