- ETH tapped its lowest price against BTC in the last 20 months.
- The altcoin price may increase in Q1 due to its scheduled major upgrade.
AMBCrypto’s analysis of the ETH/BTC chart showed that the altcoin slipped to its lowest against Bitcoin [BTC] since May 2022.
According to data from TradingView, Ethereum’s [ETH] price fell against BTC by 32.68% in the last 365 days. The last six months have not been any better as it dropped by 18.80% to 0.048 BTC.
Source: TradingView
Fake approval falls in ETH’s favor
A major reason for the development is the optimism around the Bitcoin ETF. Many market participants believe that the potential approval of the Bitcoin ETFs would be great for the market.
This has also been obvious in Bitcoin’s performance which had a 170% increase in 2023. But on the 9th of January, AMBCrypto reported how the U.S. SEC’s X account was compromised, leading the hackers to announce that all the spot ETFs had been approved.
This development sparked an increase in volatility as prices sharply went up and down within minutes. However, in all of that brouhaha, ETH gained.
At press time, ETH’s price was $2,380. This was after the value increased by 3.37% in the last 24 hours. Also, the ETH/BTC value changed and increased to 0.052 BTC— a 2.05% increase against the number one cryptocurrency.
However, On a Year-To-Date (YTD) basis, Bitcoin has outperformed Ethereum. While ETH had a 0.95% increase, Bitcoin boasted a 4.05% jump since the new year began. As it stands, ETH might not be able to dominate BTC in the short term,
This, however, depends on the SEC’s resolution. Before yesterday’s hack, some of the ETF applicants mentioned that the regulatory agency would disclose its decision on the 10th of December.
But recent events showed speculation that the resolution could again be delayed. If this happens, then the predictions that Bitcoin would price higher could go down the drain. However, if the SEC endorses them, ETH might find it hard to displace BTC’s dominance.
It’s not a Bitcoin-only show for Q1
Despite the projection, there is a chance that the altcoin will enjoy a dominant season in Q1 2024. One reason for this is that the Ethereum Dencun upgrade would be completed between January and February.
The upgrade aims to improve the security and scalability of the Ethereum blockchain. However, data obtained from Santiment showed that development activity on the blockchain had slowed down.
Development activity shows the rate at which a project is shipping out new features.
Source: Santiment
So, the decline here, implies that there has not been a lot of polishing on Ethereum. However, as the Dencun Testnet draws nearer, the state might change for the better.
Realistic or not, here’s ETH’s market cap in BTC terms
Should this be the case, ETH’s value could be affected and possibly flip bullish. AMBCrypto also compared the amount of BTC and ETH holders.
As of this writing, ETH holders were 112.18 million. Bitcoin, on the other hand, had 52.64 million. This data showed that, despite ETH’s inconsistencies, a lot of players believe in its potential.
