Ethereum Stretches Gains Versus Bitcoin, Adds 10% Ahead Of Shanghai

Dalmas Ngetich

2 years ago

3 mins read

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Trading at around $1,900, Ethereum is one of the top-performing cryptocurrencies, only trailing Dogecoin, CoinMarketCap data on April 6 shows.

Ethereum Outperforming Bitcoin

When writing, Ethereum is also relatively firm against Bitcoin. While liquid and remains the most valuable digital asset, BTC has been consolidating below $29,000.

Ethereum is up roughly 1% against BTC in the last trading day. However, from the candlestick arrangement in the daily chart, the coin is up approximately 10% versus Bitcoin from March 2023 lows.

Looking at the ETHBTC formation, it is evident that ETH buyers are in the driving seat. However, Bitcoin was firmer in the first three months of 2023, adding about 20% against ETH.

ETHBTC Price Chart On April 6| Source: ETHBTC On Binance, TradingView

By the time Q1 2023 ended, Bitcoin had managed to reverse the losses it had posted against ETH in the second half of 2022. From September 2022 to March 2023, BTC gained 30% against ETH, forcing prices back to important reaction points defined in the second half of 2022.

Bitcoin Is King But Trails ETH Ahead Of Shanghai

There were several factors behind this Ethereum upswing, outpacing Bitcoin.

Although Bitcoin and Ethereum are two of the most liquid cryptocurrencies, BTC’s first-mover advantage and regulatory clarity make an option for some institutions. From a regulatory standpoint, Bitcoin also has support from United States Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). Both agencies have clarified that Bitcoin is a commodity.

Also, institutions are accumulating BTC. MicroStrategy, whose shares are listed on NASDAQ, is one of the largest BTC holders and continues to accumulate, recently purchasing more coins.

MicroStrategy has acquired an additional 1,045 #bitcoin for ~ $29.3M at an average price of $28,016 per bitcoin. As of 4/4/2023 @MicroStrategy holds 140,000 bitcoin acquired for ~$4.17 billion at an average price of $29,803 per bitcoin. $MSTR https://t.co/IBufTxalnv

— Michael Saylor⚡️ (@saylor) April 5, 2023

Meanwhile, Ethereum’s liquidity position makes ETH an option for investors. Even so, considering its position in the market cap leaderboard and continuous upgrades, ETH can draw traders’ and investors’ attention.

For this reason, investors are closely monitoring events ahead of the Ethereum Shanghai upgrade in mid-April. It is a crucial network update that will see the platform fully transition as a proof-of-stake blockchain, with stakers freely able to withdraw their coins. Until this upgrade happens, ETH stakers cannot move their coins from the Beacon Chain. When writing on April 6, there was 18,077,351 ETH worth over $34 billion locked.

Traders are optimistic that this update could support prices, possibly explaining the sharp gains of the past few trading days.

Besides the ETH rally, the total value locked (TVL) in liquid staking platforms, such as Lido Finance and Rocket Pool, has been rising for the better part of Q1 2023.

Feature Image From Canva, Chart From TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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