Ethereum Underperforms as Bitcoin Reaches New All-Time Highs
Bitcoin has exhibited strong bullish momentum, reaching new all-time highs, while Ethereum has underperformed significantly. As Bitcoin peaked above $93,000, Ethereum only managed to reach $3,396, remaining approximately 37.5% below its all-time high of $4,878 from November 2021. Currently, ETH is experiencing a market correction, declining by 2.3% in the past day and trading at $3,023.
Why is Ethereum Struggling to Catch Up?
Ethereum's lagging performance compared to Bitcoin has drawn attention from analysts. Darkfost, a CryptoQuant analyst, noted that the taker buy-sell ratio on Binance is an important indicator of market sentiment. When this ratio is below 1, it indicates greater selling pressure than buying interest, which may deter traders from accumulating ETH at current levels and contribute to its price stagnation.
The taker buy-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 compared to BTC.
Is There Still Hope For ETH?
Despite Ethereum's challenges, some analysts maintain a positive outlook for its long-term potential. Kingpin Crypto expressed a bullish sentiment regarding ETH's current price, suggesting that trading around $3,000 presents a notable buying opportunity. He believes Ethereum will reach a new all-time high in this cycle.
$ETH – Buy with conviction around the orange line and retire.
I know the BTC pair is underwhelming and feels like it will be down only forever.
However, I am telling you…
Ethereum will make a NEW ATH this cycle. pic.twitter.com/T2r2TDmkb7
— Kingpin Crypto (@Kingpincrypto12) November 15, 2024
Another analyst, Yoddha, identified a potentially bullish pattern for Ethereum, suggesting that ETH may have completed a retest phase, indicating a possible upcoming price rally. The chart shared by Yoddha shows the current position of ETH within this historical pattern, implying a significant upward move could follow.
The chart labeling “we are here” illustrates ETH’s current status in the pattern, hinting at potential future gains.
Featured image created with DALL-E, Chart from TradingView