A widely followed crypto analyst is warning that Ethereum (ETH) will likely underachieve relative to Bitcoin (BTC) for a while.
In a new video update, crypto trader Benjamin Cowen tells his 788,000 YouTube subscribers that he believes that Bitcoin dominance (BTC.D) will continue to rise, suggesting that Ethereum will lag behind.
BTC.D tracks the percentage of the total market cap that belongs to Bitcoin. A bullish BTC.D chart indicates that altcoins in general, including Ethereum, are printing smaller gains than BTC.
Says Cowen,
“My crypto portfolio for the last couple of years has been predominantly just Bitcoin because I suspect that it will outperform most of the rest of the market – not all of the market, but most of the rest of the market – and that’s why the dominance has gone higher.”
Cowen says that Ethereum against Bitcoin (ETH/BTC) is facing significant resistance after dipping below a trendline and attempting to retest it.
“It’s Bitcoin rallies that break Ether-Bitcoin down. And look at this [ETH/BTC] breakdown. It finally broke this wedge to the downside…
It’s the same thing that it did last cycle… And now we find ourselves in a position where if I connect the dots where the Ether-Bitcoin pair is potentially backtesting this trendline, the trendline that it held as support in October of 2022, in March of 2023, and in June of 2023 and in September of 2023. It’s now testing it from beneath in November of 2023. Now, I contend that this could offer a significant resistance level.”
Cowen warns that even if ETH/BTC does make a move above the trendline, the pair will still face a number of resistance levels to the upside that it would need to flip as support to convincingly reverse the downtrend.
“There’s all these resistance levels. I mean you could draw them horizontally if you prefer and just sort of look at some of these resistance levels that Ether-Bitcoin tried to hold. It’s got a lot to get through in order to prove something.”
ETH/BTC is trading for 0.0560 BTC ($2,093) at time of writing.
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