• Ethereum and Bitcoin are the top two cryptocurrencies by market cap.
• Ethereum has typically outperformed Bitcoin when the crypto market turns bullish, but recently this has not been the case.
• The two cryptocurrencies have reached an unusual inflection point that could cause further discrepancy between the two giants.
Cryptocurrencies have become a major force in the global economy and Ethereum and Bitcoin are leading the charge. Ethereum and Bitcoin represent the number two and one cryptocurrencies by market cap, respectively, and their movements are often seen as a barometer of the health and direction of the overall crypto market. While the two coins tend to move in tandem, Ethereum has typically been the asset with the slight edge performance-wise when the crypto market turns bullish.
That hasn’t recently been the case, however, causing the ETHBTC trading pair to reach a precarious inflection point that could cause further discrepancy between the two crypto giants. A closer look at the history between the two coins reveals a pattern of Ether outperformance over Bitcoin that could be at stake. The chart below depicts two converging, long-term trend lines taking the two cryptocurrencies to an unusual inflection point.
The longer of the two trend lines dates all the way back to the launch of Ethereum. From the lowest touch of the trend line to where the upper trend line formed, ETH grew 9000% against BTC. From the top trend line to the bottom, ETH fell 89% against BTC in a shocking twist of fate. From the second lower trend line touch to the second upper trend line touch, ETH rose another 290% against BTC.
These numbers give some indication of the scale of the discrepancy between the two coins. If the current trend of Ethereum underperforming Bitcoin continues, it could mark a significant shift in the balance of power between the two coins. That being said, the bearishness of the crypto market as a whole could be a contributing factor to this discrepancy.
It remains to be seen what will happen next with the ETHBTC trading pair, but the inflection point could be a sign of things to come. Investors should watch closely to see how the two crypto giants fare against each other in the coming weeks and months.