While Bitcoin continues to show strength as it nears its previous all-time high and increased demand for ETFs, Ethereum could now be seeing a turnaround. In February, Ether managed to establish itself above the critical support line of 0.054 BTC after several attempts.
The recent rise above the support zone could be a sign that ETH is ready to step out of Bitcoin’s shadow and begin to gain more in price than the cryptocurrency.
However, the path to the top remains a challenge. ETH is battling a downward trend that has been ongoing since September 2022 and the associated psychological hurdle that poses a strong Bitcoin performance.
Will Ethereum soon be in the spotlight?
The price development after next week, in which Ethereum’s Dencun upgrade will be completed, could prove to be decisive. Should this update result in a sell-the-news event, investor interest could quickly turn to the upcoming Bitcoin Halving in April. This could give Bitcoin a boost against ETH and potentially push the ETH/BTC price back towards the support at 0.054.
However, if the Dencun update meets expectations, ETH could show continued strength until the spot ETF deadline in May – assuming macroeconomic conditions cooperate and a broad correction in the crypto market does not occur.
You can read what you need to know about the Ether network and what ETH is doing in general in the new BTC-ECHO Ethereum Report.
This might also interest you