Ethereum to outperform Bitcoin, here’s the indicator that says so


Ethereum is moving higher in shorter time frames and has quickly regained previous highs. The second cryptocurrency by market cap recently broke above the key resistance at $3,000 and outperformed Bitcoin in the past week.

Related literature | Bitcoin Nears $44,000 With Terra $125 Million BTC Purchase Pace Up

At the time of writing, Ethereum is trading at $3,100 with gains of 3.4% and 12.2%, respectively, in the past 24 hours and last week. Meanwhile, Bitcoin is trading north of $43,000 with a 7% gain in one week.

ETH with bullish momentum on the daily chart. Source: ETHUSD trading display

According to a pseudonym analystEthereum could continue on this track. The analyst closely monitored the price performance of BTC and ETH using the On-Balance-Volume (OBV), a metric used to measure price momentum.

While the analyst believes that both cryptocurrencies “look good,” he shared Ethereum’s OBV chart in support of a bullish proposition for this asset and its potential to run higher than BTC. The analyst said, “That’s why I’m holding ETH and selling a LITTLE BTC”.

As ETH’s OBV shows in the chart below, the cryptocurrency broke a downward trend that started in November 2021. At that time, ETH’s OBV stood at around 19 million and dropped to a low of 14 million in February.

Source: IncomeSharks via Twitter.

When Ethereum managed to break the bearish trendline, it hinted at the possibility of regaining more of its OBV and perhaps hitting the $4,000 mark. ETH is currently approaching 17 million in OBV.

On the other hand, Bitcoin has yet to break above its OBV trendline. Therefore, it could see crab-like price action until bulls or bears push in their favor. At current levels and in a short period of time, the analyst expects BTC to pull back some of its profits.

Source: IncomeSharks via Twitter

The Merger Drives Ethereum Higher

However, Bitcoin and Ethereum may continue to profit in April, when the crypto has historically made a profit. The analyst said:

Bitcoin seems to be going crazy on April 1. It marked the local bottoms before and was almost the exact bottom before a bull ran several times. Minus last year, was a local summit, it was a very pivotal date. Since we’ve already corrected, I’m leaning towards an exciting April 1st.

ETH’s current price appreciation could be supported by the impending launch of “The Merge”. The event combines Ethereum’s execution layer with its consensus layer, supported by a Proof-of-Stake (PoS) mechanism.

Related literature | Bitcoin Miner Revenue Grows 7%. This is how much they made

Data from IntoTheBlock indicates that interest in this event has increased. As can be seen below, there seems to be a correlation between this statistic and the price of ETH.



Leave a Reply

Your email address will not be published.