As Bitcoin Continues To Slump, Ethereum Seems Unstoppable
Bitcoin is struggling to sustain above the $53,000 support for the past 3 days. As the king cryptocurrency price slumped, Ethereum picked up its pace, surging to a new all-time high of $2,800.
Ethereum Appears Unstoppable
It appears that the European Investment Bank’s launch of a “digital bond” sale using the Ethereum network, has boosted Ethereum’s price. The EIB is issuing a two-year digital bond worth 100 million euros ($120.8 million), led by Goldman Sachs, Santander, and Societe Generale.
Furthermore, JP Morgan published a research note last week claiming that due to improved liquidity and increased network activity, Ether should continue to outperform Bitcoin.
According to fixed-income analyst Joshua Younger:
“Bitcoin is more of a crypto commodity than currency and competes with gold as a store of value, whereas Ether is the backbone of the crypto-native economy and therefore functions more as a medium of exchange. To the extent owning a share of this potential activity is more valuable.”
Throughout 2021, Ethereum longs dominated, reaching a high of 130 percent greater than shorts, while Bitcoin traders were typically more modest. The market pattern reversal on April 29 comes as the ratio of BTC longs to shorts is 45 percent higher. Meanwhile, Ethereum traders are just 6% net long, indicating skepticism about the recent rally.
— Eugene Ng ? (@Eug_Ng) April 28, 2021
Given that the long-to-short ratio is relatively flat, the status of OKEx traders in Ethereum should not be interpreted as bearish. The monthly trend in April, on the other hand, shows that Bitcoin traders are becoming more positive.
The expiration of BTC and Ethereum options on Friday should not be overlooked by traders. The $3.9 billion Bitcoin expiry poses a threat to bulls if the price falls below $50,000, as the neutral-to-bearish put options will gain a $700 million advantage.
Bulls currently dominate Ethereum’s more modest $930 million options expiry, and even if Ether’s price declines to $2,600, the $115 million gap in call options open interest appears to be guaranteed.
Related article | Ethereum Seems Unstoppable, Here’s How ETH Could Extend Rally
As BTC Dominance Slumped, Alt-Coins Are Picking Up The Pace
Following the plunge of valuation on Apr 18, BTC prices have been gyrating at tight ranges above $50k but capped below $60k. Traders and investors are opting to stay away, adopting a wait-and-see approach.
Meanwhile, altcoins, spearheaded by the resurgent Ethereum and Binance (BNB), have defied gravity and expectations, soaring higher to new all-time highs.
Featured image from Pixabay, Charts from Tradingview.com