Since May’s all-time high, the Ethereum price has lagged BTC. However, a chart comparing the two indicates ETH is about to play catch-up. Historically, when Ethereum (ETH) outperforms Bitcoin (BTC), it also jumps vs the dollar. Therefore, if today’s breakout holds, ETH may be about to burst higher.
During last week’s crypto crash, Ethereum came off worse than Bitcoin. As bitcoin slid 18% from $52k to $42k, Ethereum plunged almost 25%. But since, ETH has clawed back 20% compared to BTC’s 12% recovery. This has led to the Ethereum vs Bitcoin (ETH/BTC) price breaking out. Just a week ago, 1 Ether token could afford you 0.070 BTC. This morning you get $0.076. However, if the chart pattern proves true, Ether could soon surpass its highest price relative to BTC.
ETH/BTC Price Forecast
Looking at the comparison chart, we can see that Ethereum reached its highest price relative to Bitcoin during May’s bull run. ETH topped out at $0.081 BTC before sliding to 0.055 in the crash that followed. Therefore, it’s fairly obvious that the Ethereum price underperforms Bitcoin when the crypto market is going lower. However, the opposite has been true on the way up. Additionally, when ETH starts to accelerate against Bitcoin, it often pushes the dollar valuation higher.
Looking at the ETH/BTC chart, we see that Ethereum broke out against BTC on the 1st of August. The Ethereum price chart shows that in the 7 days following, ETH/USD jumped 30%. Similarly, when ETH broke out on the 31st of August, Ethereum gained 17% by September the 3rd.
This morning, a similar breakout is in progress. ETH/BTC is attempting to break above a descending trend line at $0.7500. For now, the trend is proving sticky, and the breakout is not yet confirmed. However, we will see in the next few hours if it’s successful. Positive clearance should lead to Ethereum eroding Bitcoin’s dominance and subsequently give the Ethereum price a boost.
Now, of course, this doesn’t guarantee ETH is going to fly. However, it is one of many useful tools for traders to consider when trading Bitcoin and Ethereum.
Ethereum Price vs Bitcoin Price Chart (Daily)
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