Crypto Markets Suffer – Investors May Turn from Bitcoin to Ethereum

Ethereum (ETH) is showing significant signs of recovery in the current cryptocurrency market cycle.

Although it initially lagged behind BTC in terms of gains and had no clear catalysts, recent events indicate a shift in market sentiment in favor of ETH.

Since the partial approval of the long-awaited ETF for Ethereum, the altcoin price has dropped just 8% to $3,387 as of June 25. On the other hand, however, Bitcoin has lost nearly 10% to $61,950 at the time of writing.

According to crypto analystFlow, Ethereum (ETH) has rebounded strongly against Bitcoin (BTC) from multi-year lows after a prolonged downtrend.
Flow said:

Since the beginning of this bull market, ETH seemed to be lagging. Slower price action, no clear catalyst and no strong reaction when the rest of the market was rallying.

But lately it seems we have witnessed a change…

Is it finally time for ETH to shine?
Since the 3-month low that occurred almost simultaneously for BTC and ETH… Ethereum has outperformed BTC by ~9 percentage points. Even if this is largely due to the SEC’s unexpected change in stance on spot ETF ETH, the message is clear: ETH is far from dead and could be full of surprises.

If ETH maintains this upward momentum and breaks out of its historical downtrend versus BTC, it could attract even more attention from large investors, potentially leading to a further increase in the price of Ethereum.

Impact of the Ethereum ETF

Ethereum’s recent upward momentum has been bolstered by the potential launch of the ETH ETF, which is expected in early July. It is believed that this development could enhance the appeal of Ethereum among institutional investors, potentially attracting significant capital. Interestingly, German investors are showing more confidence in Ethereum compared to Bitcoin.

Despite the positive outlook, analysts remain cautious on the excitement surrounding ETF ETH, citing their poor performance in Hong Kong compared to spot Bitcoin ETFs.

Alexander Stefanov