Bitcoin vs Ethereum : Will ETH Outperform BTC in the Next Bull Run ?
ETH/BTC ratio hits a 5-year low, with volume indicators suggesting seller exhaustion. Will Ethereum reclaim dominance against Bitcoin in the upcoming market recovery?
Can ETH Outperform BTC ?
Following the latest Federal Open Market Committee (FOMC) meeting, which signaled an economic slowdown, Bitcoin (BTC) and Ethereum (ETH) both managed to reclaim critical resistance levels.
This development raises the question of whether ETH, currently at a 5-year low relative to BTC in the ETH/BTC pair, could surpass Bitcoin in an impending market rebound.
Amid concerns regarding the economic impact of tariffs, the Federal Reserve maintained the borrowing rate between 4.25% and 4.5%, unchanged since December.
However, markets experienced a speculative surge on the possibility of the Fed implementing two rate cuts this year instead of one. With signs of inflation easing and increased pressure on the labor market, the central bank could be driven to adopt a more accommodative policy.
The anticipation of increased liquidity and policy easing has led to a strong rise in risk assets.
At the time of writing, Bitcoin surged by 5.02%, clearly breaking the resistance threshold of $85,000, while Ethereum gained 6.45%, reclaiming the $2,000 mark after a long consolidation period.
Furthermore, the daily MACD indicator for ETH/BTC turned bullish, while exchange volume reached a two-week high, suggesting a potential reversal in favor of Ethereum.
However, sustaining this trend remains uncertain. Without clear policy “execution,” post-FOMC volatility has spiked, making it harder to confirm these resistance zones as solid support levels.
Who Will Dominate the Next Market Recovery?
Fundamentals are essential to confirming this trend. As Ethereum regained the $2,000 level, significant capital flows hinted at the potential formation of a market bottom.
On-chain data confirms that the World Liberty Financial fund of Donald Trump resumed ETH accumulation. The fund transferred 25 million USDC to a new multi-signature wallet and made a purchase of 4,468 ETH ($10 million) at $2,238.
Simultaneously, retail demand surged to $2,059, triggering the largest outflow of ETH from exchanges in over two weeks: 139,000 ETH withdrawn from platforms.
However, for Ethereum to establish its dominance, the ETH/BTC must break a key resistance at 0.025, supported by a sustainable rotation of capital from BTC to ETH.
Currently, Bitcoin‘s strong fundamentals continue to fuel long-term holding sentiment, while Ethereum’s rebound depends on reclaiming the $2,500 resistance.
Without a confirmed breakthrough, volatility driven by persistent speculation persists, leaving the overall market rebound uncertain. Failure to hold key supports could see Ethereum at risk of losing the critical $2,000 support level.
Gaston Cuny
Gaston has been a writer for over 7 years and a passionate cryptocurrency enthusiast since 2020. He loves exploring the crypto ecosystem and is now dedicated to sharing his insights and discoveries through InvestX.
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This article is for informational purposes only and should not be considered as investment advice. Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
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