A widely followed crypto analyst warns that Ethereum (ETH) will likely underperform Bitcoin (BTC) for a while.
In a new video update, crypto trader Benjamin Cowen tells his 788,000 YouTube subscribers indicate he believes Bitcoin’s (BTC.D) dominance will continue to rise, suggesting Ethereum will lag behind.
BTC.D tracks the percentage of the total market capitalization that belongs to Bitcoin. A bullish BTC.D chart indicates that altcoins in general, including Ethereum, are making smaller gains than BTC.
Says Cowen,
“My crypto portfolio has been mostly Bitcoin for the last few years because I suspect it will outperform most of the rest of the market – not the entire market, but most of the rest of the market – and that’s the reason why the dominance has gone higher.”
Cowen says Ethereum vs. Bitcoin (ETH/BTC) is facing significant resistance after dipping below a trendline and attempting to retest it.
“It’s Bitcoin rallies that are destroying Ether-Bitcoin. And look at this [ETH/BTC] breaking down. It finally broke this wedge down…
It’s the same as what it did last cycle… And now we’re in a position where, if I connect the dots, the Ether-Bitcoin pair is potentially backtesting this trendline, the trendline that it identifies as support held in October 2022, in March of 2023, and in June 2023 and in September 2023. It is now testing it from below in November 2023. Now I argue that this could provide a significant resistance level.”
Cowen warns that even if ETH/BTC makes a move above the trendline, the pair will still face some resistance levels to the upside that it should flip as support to convincingly reverse the downtrend.
“There are all these resistance levels. I mean, you could draw them horizontally if you wanted, and just look at some of these resistance levels that Ether-Bitcoin was trying to hold. A lot has to happen to prove something.’
ETH/BTC is trading at 0.0560 BTC ($2,093) at the time of writing.
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