The gripping saga between Ethereum and Bitcoin has seen its highs and lows, twists and turns. And as the plot thickens in 2023, Ethereum’s native token is at a significant 15-month low in comparison to Bitcoin. So, who exactly is edging out whom in this crypto contest? Let’s dive deep.
Ethereum’s Skidding Metrics
It was eyebrow-raising when Ethereum’s price plummeted to a position where it traded alarmingly low against Bitcoin, especially in a week where the ETH/BTC pair stumbled to a distressing 0.056 BTC.
A detailed scrutiny brings to light an unsettling revelation: Ethereum’s price descended below a pivotal benchmark—the 200-week exponential moving average (often visualized as the blue wave).
As the duo slips past this critical juncture, storm clouds gather, threatening more turbulence for Ethereum as 2023 progresses. Historically, the 200-week EMA has been Ethereum’s safety net.
To put it in perspective, the pair saw a surge by a whopping 75% just three months after making contact with the wave support around July 2022.
Yet, it wasn’t always sunshine and rainbows; the coin faced a harsh reality check with a 25% dip after severing ties with this same support in October 2020.
Peering ahead into 2023, with Ethereum’s recent detachment from its 200-week EMA, there’s a palpable apprehension in the air.
Doomsayers predict another dip, possibly circling the 0.5 Fib line near 0.051 BTC, a downturn of approximately 9.5% from where it stands.
Yet, hope springs eternal, and if Ethereum manages to recapture its position at the 200-week EMA, a rebound to the 50-week EMA, visualized as the red wave, might be on the horizon.
Bitcoin’s Rise Casting Shadows
But while Ethereum struggles with its metrics, Bitcoin has been the darling of institutional capital flow. The numbers spell it out loud and clear.
As of the first week of October, Bitcoin-centric investment pools have seen a lucrative influx of $246 million for the year. Ethereum, in sharp contrast, seems to be on shaky ground with a loss of $104 million during the same timeframe.
Ethereum’s wavering position might very well be attributed to the increasing chatter about the possibility of a spot Bitcoin exchange-traded product getting a nod of approval stateside.
Experts in the trade are leaning into this buzz, hypothesizing a whopping $600 billion inflow upon the product’s launch. Not just that, Bitcoin is gleefully riding the tailwinds of its impending fourth halving, slated for April 24, 2024.
This anticipated event will curtail the Bitcoin miners’ rewards, taking it down from 6.25 BTC to a mere 3.125 BTC. Historically, such a reduction has proven bullish for Bitcoin, slashing the new supply by half.
As we navigate the convoluted alleys of cryptocurrency, it’s evident that Ethereum and Bitcoin are on different paths. Ethereum, with its recent stumbles, faces a mountain to climb, especially with Bitcoin’s unabated march forward bolstered by promising institutional interests and future prospects.
The question is, will Ethereum rally and prove its mettle, or will Bitcoin continue its dominating stride? Only time will spill the secrets of this cryptic tale.
Source: https://www.cryptopolitan.com/ethereum-battle-with-bitcoin-whos-winning/