Bitcoin has taken the spotlight this week in many ways after finally breaking out of the $57,000 to $62,000 range, and finally making a confident move above it's 200-day moving average.
With Bitcoin looking to to make an attack towards $70,000 over the coming weeks I think today would be a good time to touch upon Ethereum.
Source: Tradingview.com
ETH has been a real headscratcher lately, and more so since the ETF launch not only failed to propel Ethereum as many expected.
Not only did Ethereum fail to rally, but ETH actually crashed much more than many traders had envisioned it ever would this cycle.
One of the big reasons why Ethereum failed after the ETF launch is due to Grayscale.
Source: Fairside.co.uk
We have seen a consistent exit of the Grayscale ETH vehicle, creating tremendous daily sell pressure on ETH.
Other reasons outside the ETF selling exist, such as the widely held belief amongst many crypto enthusiasts that Solano is a much better network.
Source: Tradingview.com
This new belief or losing of faith in ETH is based upon the fact that network costs are just too high, and Solano is simply becoming far superior.
Inflationary and supply dynamics also exist. Ethereum does not have a limited supply like Bitcoin or indeed Gold.
Both of which benefitted dramatically after launching ETF's.
A final mention goes to the staking element. From what I read the staking of ETH portion is over for many.
So what do the charts say? Well, if you look at the series of lower highs on the weekly and daily chart it's no surprise ETH collapsed.
Source: Tradingview.com
My own analysis says we should be concerned when ETH is below the $2,700 level, but if it can maintain above this major pivot area then $3,300 and $4,000 are up next.
The DeMark indicator alone then ETH is a raging buy right now. In fact, Demark analysis shows that ETH is even more bullish than SOL or BTC given the upside potential and time frame it has to run higher on the Demark 9 count.
Source: Symbolik.com
On-chain data shows that major whale movement has been going on recently, with 1,000 to 10,000 ETH holders buying aggressively.
Special mention should be given to a recent extremely large spike in Token Age Consumed and large Green DAA flows.
Source: Santiment.net
Overall, if Bitcoin is heading higher now, it's a no- brainer that ETH will start to head higher.
The big question is whether to allocate more money to ETH or BTC or even SOL.
For pure percentage gains I'd speculate Solano would be the winner, but for safety, I would put my own capital on Bitcoin. That's my 2 cents on the topic.
