Due to a collapse in the ICO bubble and the narrative shifting from altcoins to BTC, the -80% performance ETH has registered is much worse than that of Bitcoin. From its all-time high of $20,000, BTC is down less than 50%.
While there are many believing the leading cryptocurrency will continue to outperform altcoins, a prominent investor is throwing his weight behind Ethereum.
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Ethereum Poised to Outperform Bitcoin?
Bitcoin’s performance may be impressive, but even more impressive is that of Ethereum.
The second-largest digital asset is up more than 22% in the past week alone, according to data from Coin360.com. Over that same time period, BTC is up “only” 14.45%.
Real Vision chief executive Raoul Pal, who commented on the chart of ETH/BTC after the recent breakout, said in reference to the chart below:
“It even looks like Ether will outperform Bitcoin at some point (no position yet). Please remember: No tribal attacks about bitcoin vs ethereum. They are two different things and two different ecosystems.”
ETH/BTC chart from prominent Wall Street investor and analyst Raoul Pal (@RaoulGMI on Twitter).
The chart shows Ethereum breaking out of a crucial resistance against Bitcoin that formed after the February highs.
Pal’s optimism about Ethereum’s prospects, especially against Bitcoin, has been echoed by a limited set of other market participants.
Per Mohit Sorout — partner at crypto hedge fund Bitazu Capital — it is “quite possible that ETH has printed a major cycle low [against Bitcoin],” pointing to the chart seen below. He claimed in late April that the chart shows a bullish “weekly market structure.”
As to why exactly the chart signals that upside is likely, he pointed to two factors:
ETH/BTC has begun to print consecutive higher lows and higher highs, indicative of a reversal
And the directional movement index (DMI) indicator has recently crossed bullish.
Quite possible that $ETH/ $BTC has printed a major cycle low.
Weekly market structure is bullish