Ethereum managed to gain more than 20% in value against Bitcoin within 72 hours, and investors are predicting that Ethereum will continue to appreciate against Bitcoin. This development came particularly after the approval of spot Bitcoin ETF applications, which led to speculation about potential spot ETFs for Ethereum.
Why Is Ethereum Gaining Value?
Data from TradingView shows that the ETH/BTC pair rose from the year’s lowest level of 0.0478 seen on January 9 to 0.0587 within the day. The ETH/USD pair also reached its highest levels since mid-2022 during this period. At the time of writing, the ETH/BTC pair was trading at 0.06041.
The rise in the moving average convergence divergence (MACD) indicator against Bitcoin on weekly time frames is currently another data point of interest to popular analysts.
The BTC/USD pair managed to reach its highest levels since December 2021 following the approval of ETF applications, but this rise was short-lived. However, Ethereum’s comeback could overshadow Bitcoin. Rumors that Ethereum could launch its own US ETF product later in the year have increased the upward momentum.
This week, BlackRock’s CEO Larry Fink, who launched a Bitcoin ETF product, stated on January 12 to CNBC that he sees value in an ETF for Ethereum. On the matter, popular analyst and podcast host Scott Melker shared the following via X:
“Just a day after the Bitcoin launch, Larry Fink is already beating the Ethereum drum.”
Prominent Figure Highlights Halving
Michaël van de Poppe, founder and CEO of trade firm MNTrading, suggested that Ethereum continues to gain ground against Bitcoin as part of the combined cryptocurrency market value:
“Bitcoin dominance seems to have peaked before the Bitcoin halving event. We expect to see continuity while Ethereum gains more momentum. This could be the highest level of this cycle in Bitcoin Dominance as the altcoin bull market begins.”
Van de Poppe therefore suggests that attention may shift away from the BTC/USD pair until the halving event expected in April. Meanwhile, as institutions continue to want to invest in Bitcoin in the long term, a significant Bitcoin supply crunch is anticipated due to the ETF process.
