Bitcoin (BTC) is the largest cryptocurrency always dominated the headlines and pushes the mainstream hype around cryptocurrencies. In terms of performance, it is no news that Ethereum (ETH) has trailed BTC in recent years. However, according to crypto analyst Dave the Wave, Ethereum could outperform Bitcoin in the coming years.
a different perspective
Dave the Wave took to social media to share his thoughts on Ethereum/Bitcoin price action. The current trajectory shows that Ethereum has fallen in performance against Bitcoin since the beginning of the year.
A deeper examination shows that Ethereum follows a pattern of lower highs and lower lows, which is indicative of an ongoing downtrend. However, according to the pseudonymous crypto analyst, a larger time frame gives a better picture of the overall situation.
“The longer time frame trumps the shorter one and helps predict future price action, which is what speculation is all about, as opposed to simply describing recent past price action,” he said.
ETH/BTC
Careful with [shorter-term] in retrospect – it’s a series of lower highs until it isn’t.
The longer the time frame is more important than the shorter…. and helps predict future price action, which is what speculation is all about, as opposed to simply describing recent past prices… pic.twitter.com/kMrqN3istb
— dave de wave
(@davthewave) September 29, 2023
A closer look at a multi-year time frame shows that a bearish wedge has formed in the performance of the Ethereum/Bitcoin pair since July 2022. The current situation shows that the formation of this wedge may be nearing its end, indicating a decrease in downward momentum and a potential trend reversal.
This possible reversal is echoed by the Fibonacci indicator, which shows that the downtrend is at the 0.236 level.
Can Ethereum Outperform Bitcoin?
Ethereum has often outperformed Bitcoin for periods stretching for months at a time. The ecosystem also has a few key advantages over BTX that could help it perform better in the coming years.
While Bitcoin is still the leading cryptocurrency, Ethereum looks set to gain more mainstream popularity in the coming years. Like more projects and blockchains are built and connected to the Ethereum networkwe could see Ethereum flip Bitcoin in performance as early as next year.
BTC remains the primary vehicle for wealth creation
Bitcoin still remains the most important vehicle for building wealth in both the crypto and traditional markets. According to Dave The Wave, Bitcoin is poised to continue this trajectory for the coming years before they become fully capitalized and reach the same level as the traditional markets. The analyst makes this prediction by dividing a logarithmic growth curve, which shows that BTC still has a greater chance of growth in the longer term.
BTC chart for growth | Source: X
Bitcoin in particular has led the crypto markets in gains over the past week. Meanwhile, Ethereum has also posted a 9.82% gain in a seven-day span and is currently trading at $1,730. However, Ethereum is facing resistance at USD 1,750 which could force a downward correction.
ETH price looks strong above $1,700 | Source: ETHUSD on Tradingview.com
Featured image of StealthEX, chart from Tradingview.com