Ethereum Prints Pivotal Reversal Against Bitcoin Amid ETH2 Rollout

Nick Chong

Last Updated: June 11, 2024 2:08 pm

2 mins read

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Ethereum strongly underperformed Bitcoin during BTC’s move to $16,000. In fact, for most of the rally from $13,000 to $16,000, ETH was trading for $380-400, failing to break higher.

But after BTC has begun to consolidate, ETH has finally started to break higher. Ethereum currently trades for $440, up 10% in the past 24 hours alone.

Analysts see this reversal as notable due to the fact that it comes at an important support level for the ETH/BTC trading pair.

Ethereum’s Bounce Is One of Importance, Market Analysis Shows

As noted by a prominent crypto-asset analyst during the move higher, ETH/BTC’s bounce comes at a pivotal level. The chart below shows that the bounce has allowed Ethereum to maintain a level of macro importance against Bitcoin, which held during the late-2017 correction, along with other corrections in ETH’s history.

The fact that Ethereum managed to bounce perfectly at this level suggests there is some upside for the altcoin against Bitcoin.

The same analyst noted that this bounce came on an influx of volume for Ethereum. This indicates that there were investors that cycled their profits from Bitcoin into Ethereum, sparking the strong 10% gain that we’ve seen today.

Chart of ETH/BTC's price aciton over the past few months with analysis by crypto trader SalsaTekila (@salsatekila) on Twitter. 
Source: ETHBTC from TradingView.com

Buoyed by Fundamental Trends

Ethereum is getting buoyed by fundamental trends, it seems.

Australia’s central bank, the Reserve Bank of Australia, recently announced its intent to use Ethereum technology for its CBDC pilot test:

“The Reserve Bank today announced that it is partnering with Commonwealth Bank, National Australia Bank, Perpetual and ConsenSys Software, a blockchain technology company, on a collaborative project to explore the potential use and implications of a wholesale form of central bank digital currency (CBDC) using distributed ledger technology (DLT)… The project will involve the development of a proof-of-concept (POC) for the issuance of a tokenised form of CBDC that can be used by wholesale market participants for the funding, settlement and repayment of a tokenised syndicated loan on an Ethereum-based DLT platform.”

There also seems to be an institutional push towards the adoption of the leading cryptocurrency. Ethereum, for one, is expected to be added to Fidelity’s cryptocurrency platform.