Ether, the second-largest cryptocurrency by market capitalization, has seen an 18% decline against Bitcoin over the past six weeks. Despite this downtrend, traders are cautioning against dismissing the asset known as “the world computer.”
Crypto trader Merlijin The Trader has warned that being bearish on Ethereum is a “mistake,” emphasizing that the momentum for Ether is “undeniable.” He suggests that the next significant move for Ethereum is imminent.
Currently, the ETH/BTC ratio, which measures Ether’s relative strength to Bitcoin, stands at 0.0332. This marks a 17.5% decline since December 5, coinciding with Bitcoin hitting $100,000 for the first time. Historically, during the last bull market, the ETH/BTC ratio bottomed out at a similar level before surging significantly.
Some analysts suggest Ethereum could benefit from Bitcoin’s broader adoption. Following speculation about potential strategic developments involving Bitcoin under US President-elect Donald Trump, Apollo co-founder Thomas Fahrer suggested that Bitcoin’s projected rise to $1 million could lead to bullish outcomes for Ether as well.
Over the past year, Ether’s highest level was $4,066, recorded in March. However, it failed to maintain a crucial support level of $4,000 in December, subsequently falling below $3,500 and currently trading at $3,365. Meanwhile, Bitcoin has stabilized above $100,000, after previously fluctuating around this level.
Concerns have been raised by some market analysts about the impact of the Ethereum Merge, with financial analyst Rajat Soni noting that Ethereum was anticipated to become deflationary post-Merge but supply levels have almost returned to their pre-Merge state.
As always, investors are advised to conduct their own research before making any trading decisions, as the market remains volatile and subject to risks.