Bitcoin has hit an all-time high, reaching $97,862.64, while Ethereum continues to struggle against Bitcoin, dropping to its lowest levels this year. This significant rise in Bitcoin’s price has led to an increase in Bitcoin’s dominance in the market, now standing at 60.5%. This surge is primarily attributed to investments from institutional investors and changes in the political landscape, including Donald Trump’s election as President-elect and his positive stance on cryptocurrencies.
On the other hand, Ethereum’s dominance has decreased to 11.8%, down from 13.8% last month. The ETH/BTC pair has hit a yearly low, indicating that Ethereum has not performed as well as Bitcoin this year. The Moving Average Convergence Divergence indicator for ETH also suggests some momentum struggles at critical resistance levels, while the Altcoin Season Index shows that the market is currently not favoring altcoins.
The future trajectory of Ethereum’s recovery depends on both fundamental and technical factors. Fundamental analysis shows ongoing acceptance of Layer-2 solutions, developments in decentralized finance, and active staking on Ethereum 2.0. Technical analysis points to an initial level of support at 0.057 BTC, with resistance levels at 0.065 BTC and 0.070 BTC that ETH needs to surpass to regain momentum.
To bridge the gap and improve its performance against Bitcoin, Ethereum will need to break above these resistance levels and navigate ongoing network upgrades successfully. These strategic moves could potentially help the ETH/BTC pair regain lost ground and compete more effectively with Bitcoin in the market.
