Here’s Why Bitcoin’s Upside May Be “Capped” Relative to Ethereum

  • Ethereum has been able to catch up to some of the gains posted by Bitcoin as of late, but it still has a long way to go before it breaks its trend of underperformance
  • Yesterday, the cryptocurrency saw a swift rally past $460 that came about in the absence of any BTC movement
  • This was a promising push higher, and it has yet to surrender much of these gains
  • One analyst is now looking towards $500 as a critical level to break
  • He notes that a 10% move higher will lead ETH above this level and make it a far better value play than BTC
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Ethereum has seen some immense strength throughout the past few days, rallying independently of Bitcoin as the aggregated DeFi sector shows signs of catching a second wave of momentum.

If DeFi tokens continue their ascents and rekindle the farming craze, it could drive massive demand to the Ethereum network – in turn enhancing the cryptocurrency’s fundamental strength.

One trader is watching for ETH to begin outperforming BTC if it can break above $500. He notes that a break above this level would spark some serious upside.

He also added that, at the moment, Bitcoin’s upside might be “relatively capped” as compared to that of Ethereum.

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Ethereum Holds Above $460 as Uptrend Stalls 

Yesterday, Ethereum saw a massive push higher that led it up to $465. This momentum rapidly stalled, and ETH has yet to break its weekly highs of $469 set just four days ago.

At the time of writing, ETH is trading up just over 2% at its current price of $461. Its steady advance has been positive, but it still has multiple hurdles to surmount before it can break $500.

There appears to be massive resistance around $470, as well as $490. Once these two levels are shattered, it’s open skies for the crypto.

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Legendary Trader: BTC Upside Potentially Capped Compared to That of ETH

One legendary pseudonymous trader, known for his massive seven-figure Bitcoin bets, stated in a recent tweet that he believes Bitcoin’s upside may be capped compared to Ethereum.

However, he believes that breaking $500 is crucial for this to be a tradeable sentiment.

“Think BTC upside might be relatively capped when compared to ETH if ETH is able to break 500…”


Image Courtesy of Flood. Source: ETHUSD on TradingView.

Unless Ethereum fails to break above its near-term resistance levels, its upside potential is quite significant.

Featured image from Unsplash.
Charts from TradingView.

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