Bitcoin [BTC] and Ethereum [ETH] have encountered significant price obstacles in recent months, experiencing sporadic surges that propelled them to new peaks.
Despite sharing similarities, recent data reveals a decline in ETH’s strength relative to BTC. Moreover, market participants responded differently to ETF launches for both assets, showing a preference for BTC over ETH.
Ethereum Hits 40-Month Low Against Bitcoin
Data from IntoTheBlock indicates that Ethereum is currently trading at its lowest point against Bitcoin in over 40 months. An examination of the ETH/BTC pair on Coinbase highlights a clear downtrend, with ETH trading at 0.04044 BTC, representing a decrease of 0.25%.
Furthermore, the Death Cross pattern emerges as the 50-day moving average (yellow) falls below the 200-day moving average (blue), signaling an extended bearish trend. Price movement indicates a consistent decline characterized by lower highs and lower lows, reinforcing Ethereum’s diminishing strength compared to Bitcoin.
Bitcoin Gains Ground Against Ethereum
Analysis of the BTC/ETH pair on Vantage reveals Bitcoin’s recent dominance over Ethereum, with the price standing at 24.7097 ETH, showing a slight decrease of 0.04% while maintaining a strong upward trend.
The Golden Cross pattern is evident on the chart, where the 50-day moving average (yellow) crosses above the 200-day moving average (blue), indicating a sustained bullish trajectory. Price action confirms this momentum with a sequence of higher highs and higher lows, indicative of Bitcoin’s ongoing supremacy over Ethereum.
Bitcoin Trumps Ethereum in ETF Flows
The disparities in ETF flows shed light on the divergent market sentiments toward these two assets. Recent data from Spot on Chain reveals that Bitcoin ETFs attracted approximately $92 million in inflows this week, contrasting sharply with Ethereum’s mere $2.9 million.
Overall, Bitcoin ETFs raked in over $397 million in total inflows, experiencing positive flows on four out of five trading days. In contrast, Ethereum ETFs recorded a total negative flow of -$26.2 million, showing inflows on just two out of five days.
Additional data from Soso Value reinforces this trend, indicating a positive cumulative net flow of approximately $17.7 billion for US Bitcoin spot ETFs, while US Ethereum spot ETFs exhibited a negative net flow of around $607 million. This data underscores traders’ clear preference for Bitcoin over Ethereum, evident not only in price movements but also in ETF investment choices.
Bitcoin Maintains Lead Over Ethereum
In summary, Ethereum has significantly ceded ground to Bitcoin in recent times, with bearish trends dominating its performance against BTC. The divergent market responses to their respective ETFs further emphasize Bitcoin’s current vigor and investor favoritism.
As traders continue to show a preference for Bitcoin ETFs and the BTC/ETH ratio remains in favor of Bitcoin, the bullish momentum of Bitcoin could persist, while Ethereum grapples with ongoing challenges in its recovery.