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While bitcoin has faced strong bullish momentum in recent weeks, consistently hitting new all-time highs for days, ethereum has underperformed, unable to match btc's bullish pace.
Even compared to other cryptoassets (altcoins) in the market, ethereum has failed to achieve a major rally that melts faces.
Instead, when bitcoin peaked above $93,000, leading the overall crypto market in a bull market, ethereum could only rise to just $3,396 during the same period, btc broke multiple resistances to reach new consistent highs.
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So far, eth remains roughly a 37.5% decline from its all-time high of $4,878, seen 3 years ago in November 2021. At the time of writing, the asset is facing a correction along with the rest of the cryptocurrency market. cryptocurrencies, including bitcoin. eth is down 2.3% in the last daycurrently trading on $3,023.
Why is ethereum struggling to catch up?
ethereum's poor performance relative to bitcoin has caught the attention of market analysts. One key observation comes from a CryptoQuant analyst known as Darkfost, who provided a possible <a target="_blank" href="https://cryptoquant.com/insights/quicktake/67366471ab157466619622b7-eth-selling-pressure-remains-on-Binance” target=”_blank” rel=”nofollow”>explanation due to the stagnation of the price of ethereum.
According to Darkfost, The buyer's buy-to-sell ratio is a crucial metric to consider.particularly on the Binance exchange. This ratio is an indicator of short-term market sentiment and when it remains below 1, it suggests that there is more selling pressure than buying interest.
It may also indicate a hesitation among traders to accumulate eth at current levels, which could contribute to lagging price performance.
Darkfost noted:
The buyers bid-sell ratio on Binance remains bearish as it has been below 1 most of the time over the past month. This indicates that traders are more willing to sell than buy eth, which could explain why eth is currently underperforming btc.
Is there still hope for eth?
Despite ethereum's struggle to match bitcoin's gains, some analysts remain optimistic about eth's long-term potential.
For example, a well-known crypto analyst, Kingpin crypto, expressed bullish sentiment regarding eth at its current price levels. In a recent post on x, Kingpin crypto <a target="_blank" href="https://twitter.com/Kingpincrypto12/status/1857431965877608478?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>suggested that eth trading around the $3,000 mark presents a notable buying opportunity.
<blockquote class="twitter-tweet”>
<a target="_blank" href="https://twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>$eth – Buy with conviction around the orange line and retreat.
I know the btc pair is disappointing and I feel like it will be down forever.
However I tell you…
ethereum will create a NEW ATH in this cycle. pic.twitter.com/T2r2TDmkb7
—Kingpin crypto (@Kingpincrypto12) <a target="_blank" href="https://twitter.com/Kingpincrypto12/status/1857431965877608478?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow”>November 15, 2024
Similarly, another cryptanalyst, Yoddha, shared a <a target="_blank" href="https://x.com/CryptoYoddha/status/1854913924334076401″ target=”_blank” rel=”nofollow”>analysis indicating a potentially bullish pattern for ethereum. According to the chart shared by Yoddha, eth's historical price movements often include a retest phase followed by a sharp rise in value.
Yoddha highlighted that ethereum may have already completed its retesting phase, suggesting that a strong price rally could be on the horizon.
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The “we are here” chart points out eth's current position within this pattern, implying that a significant upward move could soon follow.
Featured image created with DALL-E, TradingView chart
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