Into The Cryptoverse CEO Benjamin Cowen recently discussed Ethereum’s (ETH) performance in relation to Bitcoin’s (BTC) dominance as the flagship digital asset.
In a recent YouTube video, Cowen suggests a continued rise in Bitcoin dominance (BTC.D), indicating that Ethereum may lag behind and show smaller gains compared to BTC.
Cowen explains that his crypto portfolio has predominantly held more Bitcoin because he anticipates that BTC will outperform numerous assets, though not all.
Additionally, Cowen notes that Ethereum against Bitcoin (ETH/BTC) is encountering substantial resistance after falling below the trendline and attempting a retest.
A BTC rally would result in the breakdown of Ether-Bitcoin, he explained. He pointed out how the ETH/BTC pair finally broke the wedge to the downside, highlighting that it’s akin to what happened in the last cycle.
As he connects the dots, the Ether-Bitcoin pair is potentially backtesting the trendline that served as support in October 2022, March 2023, June 2023, and September 2023. Since the ETH/BTC pair is now testing from beneath the wedge in November 2023, it could offer a significant resistance level.
However, Cowen cautions that even if ETH/BTC manages to move above the trendline, the pair will encounter several resistance levels to the upside. These levels must be successfully flipped as support to convincingly reverse the downtrend.
He further explained, stating that, there are numerous resistance levels. Whether one opts to depict them horizontally or analyze them differently, ETH/BTC still faces a significant challenge. It must have to overcome these resistance levels to indicate a meaningful reversal.
At the time of writing, ETH/BTC is valued at 0.05578 BTC, equivalent to $2,068.80 on Tradingview. Meanwhile, BTC/USDT is valued at $37,112, according to Coingecko.
ETF expectations
The recent surge in Bitcoin and Ethereum has significantly influenced the cryptocurrency market.
Bitcoin has reached $37,000, marking highs not seen since May 2022. This may be driven by the ongoing expectation that U.S. regulators approve a spot Bitcoin exchange-traded fund (ETF).
Simultaneously, Ethereum has rallied close to $2,100, reclaiming the $2,000 level for the first time since mid-July. The rise in digital assets, especially XRP, may also be attributed to Bitcoin surpassing $35,000.
Additionally, news about BlackRock planning to file for an ETH-based ETF may have also fueled Ethereum’s upward momentum.
Following the anticipation of the ETF approval, which has propelled cryptocurrency prices and related stocks, This rally could be part of a broader uptrend in the crypto sector, recognized as a significant $17.7 trillion opportunity by market strategists.
However, altcoins like XRP, DOGE, UNI, and XLM have experienced declines, possibly due to a pause in capital rotation towards smaller tokens.
Fed chair Jerome Powell recently delivered a policy address to the Economic Club of New York, providing insights into the current state of the US economy and monetary policy.
This statement is significant given the critical juncture of the U.S. economy, marked by improving inflation figures alongside surging Treasury yields, creating conflicting signals about the direction of monetary policy.
Interpreted as a signal, Powell’s statement suggests that the Fed might persist with its tightening cycle, contrary to recent market expectations of a more dovish approach.