Ethereum kicked off the year, showing stellar performance compared to Bitcoin, leaving the leading crypto asset in its dust.
But following over 100% returns, Ethereum’s recent pullback was far more devastating than Bitcoin’s. However, on ETH/BTC charts, Ethereum just triggered a buy signal that suggests the asset will outperform Bitcoin for the foreseeable future.
Ethereum’s Long Road to the Bottom and Finding a New Use Case
Compared to Bitcoin, Ethereum has barely recovered from the beaten it took following the crypto bubble popping in late 2017 and early 2018.
During the year leading up to the collapse, the ICO boom drove demand for Ethereum, taking its price to over $1,400 per ETH token, as crypto investors traded the altcoin in exchange for access to early launch phase crypto projects.
At its low, the asset fell to $80, dropping well over 94% in value. During the same timeframe, Bitcoin fell just 84%.
At current prices, ETH/USD is still down over 90% from its all-time high, while BTC/USD is trading just 66% below it, showing that the leading cryptocurrency by market cap has strongly outperformed the second-largest crypto by a large margin for the last two years or more.
The underperformance has led to an 84% decline in the ETH/BTC trading pair since Ethereum peaked in 2018. At the low, the fall reached a total of 87% before a rebound began.
After the ICO boom fizzled out, Ethereum floundered, searching for a use case to prove its value once again.
That use came arrived via the rapid growth of the decentralized finance industry, in which Ethereum plays a primary role.
ETH/BTC Buy Signal Suggests Altcoin Will Outperform Bitcoin In the Days Ahead
However, Ethereum may not be done just yet when it comes to catching up against Bitcoin.
The tool has been accurately used to spot a number of tops and bottoms across a wide variety of assets including cryptocurrencies. More famously, the tool was used to call Bitcoin’s all-time high peak in 2017.
Crypto analysts have been pointing to a massive symmetrical triangle on the ETH/BTC trading pair, which could lead to a 90% or more breakout in either direction. With this latest buy signal appearing for Ethereum, the chances have increased that the 90% gain will be against the first-ever cryptocurrency.
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