Ethereum (ETH) May Outperform Bitcoin (BTC) in Short Term as Bullish Momentum Swings in Its Favor — Analyst

While Bitcoin (BTC) edges closer to its Feb. 3 low of $91,300, Ether (ETH) remains considerably above its $2,080 monthly low.

Cryptocurrency markets saw mixed results on Monday evening, as Bitcoin (BTC) edges closer to its Feb. 3 low and Ether (ETH) remains above its monthly low.

Bitcoin was trading at $92,200, down 1.2% over the past 24 hours. The world’s largest cryptocurrency dropped to a Feb. 3 low of $91,300 before recovering slightly over the past few days. BTC is still down 20% from its March 28 all-time high of $114,000.

Meanwhile, Ether was trading at $2,400, up 0.5% over the past 24 hours. The second-largest cryptocurrency dropped to a Feb. 24 low of $2,080 before recovering over the past week. ETH is still down 40% from its Nov. 10 all-time high of $4,000.

Among the top gainers, Solana (SOL) token rose 6.7% to $160. The token belonging to the high-speed blockchain network, Solana, has taken the brunt of bearish pressure over the past few weeks, following a string of outages and technical difficulties.

One crypto analyst believes that the bullish momentum may swing in Ether’s favor once the dust settles, leading to new all-time highs in a couple of months.

Doctor Profit, an anonymous crypto analyst, released a detailed Ethereum report on X, citing multiple patterns, the psychological state of the market and potential ETH returns over the next few months.

Based on a historically accurate technical indicator, the analyst said he was “insanely bullish” on the altcoin since ETH was only 18% above the 200-week EMA level. The trader explained that the price consistently bounced off this indicator in 2020 and laid out the bottom range during the 2022 bear market, adding,

“This indicator has marked every single top and bottom with 90% accuracy since 2017. I am insanely bullish on ETH as long as we are within this EMA range.”

Besides the indicator, the analyst also presented two high-time frame (HTF) setups, which included the multiple-year ascending channel and the ascending triangle pattern. Both HTF patterns are considered bullish continuation formations.

Doctor Profit outlined that most liquidity remains above $4,000. Forming a bullish confluence with the above patterns, the market makers are expected to push Ether toward the liquidity cluster to establish a breakout.

Overall, while the upside remains about 200% from the current price, the drawdown is at most 20% from current prices.

Meanwhile, data from Glassnode pointed to ETH’s cost-basis distribution, indicating the increased accumulation activity of investors around support at $2,632, where 786,000 ETH has been bought.

However, it is also important to note that a higher accumulation cluster is present at $3,150 with 1.22 million ETH. Drawing a possible inference, the data platform stated,

“While a significant amount of ETH last moved at a loss around $3,150, a large cluster of buyers may be waiting to absorb any selling pressure at this level.”

Will Ethereum outperform Bitcoin in the short term?

The recent Bybit ETH hack was expected to rattle ETH’s market structure, but the altcoin has somewhat held its own in the market.

Analyst ‘crypto sun-moon,’ a verified onchain analyst on CryptoQuant, highlighted the development in a recent analysis. According to the analyst, while BTC’s taker buy-sell ratio is decreasing, indicating weaker buying pressure, ETH’s metric is rising, suggesting strong buying pressure.

The analysis adds that such a dynamic has historically led to Ether gaining more bullish momentum against Bitcoin in the short term.

From a technical perspective, Ether might appear a little better than Bitcoin. However, it is still down 6% on Feb. 24, the largest daily drawdown among the top cryptocurrencies.

With a bearish engulfing pattern forming at the moment, Ether must maintain a daily close above $2,600. Otherwise, the market sentiment may flip bearish with the altcoin as well.

The views, thoughts and opinions expressed here are solely those of the author and do not necessarily reflect the views ofおきなわフィナンシャル. We do not offer investment, legal or tax advice. Please conduct your own research before making any financial decision.