Into The Cryptoverse CEO Benjamin Cowen recently analyzed the performance of ethereum (eth) in relation to bitcoin‘s (btc) dominance as a flagship digital asset.
In a recent YouTube video, Cowen suggests a continued rise in bitcoin (btc.D) dominance, indicating that ethereum may lag behind and show smaller gains compared to btc.
Cowen explains that his cryptocurrency portfolio has predominantly held more bitcoin because he anticipates btc will outperform many, but not all, assets.
Additionally, Cowen notes that ethereum vs. bitcoin (eth/btc) is encountering substantial resistance after falling below the trend line and attempting a retest.
A btc rally would result in an Ether-bitcoin breakout, he explained. He pointed out how the eth/btc pair finally broke the gap to the downside, highlighting that it is similar to what happened in the last cycle.
While connecting the dots, the Ether-bitcoin pair is potentially testing the trend line that served as support in October 2022, March 2023, June 2023, and September 2023. Since the eth/btc pair is now testing from below of the wedge in November 2023. , could offer a significant resistance level.
However, Cowen warns that even if eth/btc manages to move above the trend line, the pair will encounter several levels of resistance on the upside. These levels must be successfully reversed as support to convincingly reverse the downtrend.
He further explained, stating that there are numerous levels of resistance. Whether you choose to represent them horizontally or analyze them differently, eth/btc still faces a significant challenge. You must have to break through these resistance levels to indicate a significant reversal.
At the time of writing, eth/btc is valued at 0.05578 btc, equivalent to $2,068.80 on Tradingview. Meanwhile, btc/USDT is valued at $37,112, according to Coingecko.
ETF expectations
The recent rise of bitcoin and ethereum has significantly influenced the cryptocurrency market.
bitcoin has reached $37,000, a high not seen since May 2022. This may be due to the current expectation that US regulators will approve a spot bitcoin exchange-traded fund (ETF).
At the same time, ethereum has risen near $2,100, reclaiming the $2,000 level for the first time since mid-July. The rise of digital assets, especially XRP, can also be attributed to bitcoin surpassing $35,000.
Additionally, news about BlackRock’s intention to file for an eth-based ETF may have also fueled ethereum‘s upward momentum.
Following the anticipation of ETF approval, which has boosted prices of cryptocurrencies and related stocks, this rally could be part of a broader bullish trend in the cryptocurrency sector, recognized as a significant $17.7 trillion opportunity. of dollars by market strategists.
However, altcoins such as XRP, DOGE, UNI, and XLM have seen declines, possibly due to a pause in capital rotation towards smaller tokens.
Federal Reserve Chairman Jerome Powell recently delivered a policy speech to the Economic Club of New York, providing information on the current state of the United States economy and monetary policy.
This statement is significant given the critical juncture of the US economy, marked by improving inflation figures along with rising Treasury bond yields, generating contradictory signals about the direction of monetary policy.
Interpreted as a signal, Powell’s statement suggests that the Federal Reserve could persist in its tightening cycle, contrary to recent market expectations for a more dovish approach.
