- Over the past few months, views for the two best digital assets in the market have been very similar. Resurrecting the scale of the upward momentum in the market, Bitcoin investors increased their buying pressure over the last 24 hours after Tesla announced its capital reserve investment of 7.7%. Just a few hours later, Bitcoin reached a new high of over $ 48,000 while Ethereum surpassed the much anticipated $ 1,800 level.
Over the past few months, views for the two best digital assets in the market have been very similar. Resurrecting the scale of the upward momentum in the market, Bitcoin investors increased their buying pressure over the last 24 hours after Tesla announced its capital reserve investment of 7.7%. Just a few hours later, Bitcoin reached a new high of over $ 48,000 while Ethereum surpassed the much anticipated $ 1,800 level.
Could Ethereum surpass $ 2,000 this week?
With both crypto assets currently undergoing minor corrections, the question arises: Is Ethereum outperforming Bitcoin?
What is the return of ETH compared to Bitcoin?
The attached chart highlights the percentage of growth recorded by both Bitcoin and Ethereum since their previous all-time highs. As you can see, Bitcoin’s value has doubled after surpassing $ 20,000 and has increased by 133%.
Ethereum, on the other hand, grew 28% after exceeding its 2018 high of $ 1,440. It can be argued here that Ethereum also has a higher gap to fill in terms of price discovery considering that it originated in an ATH range. The structure of the Ethereum ecosystem has also evolved in the last 3 years.
Other critical indicators
Finally, Ethereum is currently in the process of migrating its network to a Proof-of-Stake system with more than $ 5 billion stakes in ETH.
Like Bitcoin, Ethereum has recorded high stock exits over the past 12 months, suggesting that its users are keeping the asset from a long-term perspective. The growth of ETH 2.0 is also another bright sign of trust in the world’s largest altcoin project.
With the launch of CME ETH Futures, the corporate window has already opened. However, CoinShares’ latest data shows that the asset class is already witnessing significant inflows.
According to the report in question, capital flows have intensified in Ethereum last week (before the commencement of CME Futures), with investments worth close to $ 195 million in altcoin. ETH; Grayscale represents about 80% of total market entries, a share that includes entities such as 3iQ and 21Shares. The report says:
“We believe investors want to diversify and are increasingly comfortable with Ethereum fundamentals.”
Price judgment is not a race, but the collective upward momentum could push ETH above $ 2,000 by the end of this week. Currently, market sentiment is extremely positive for both crypto assets, but Ethereum is likely to have a better ROI overall.
Therefore, it would not be a surprise for Ethereum to exceed $ 2,000. It is even stated that further price increases can be expected beyond this level. But remember that these are all prophecies and the market is extremely volatile. A sudden hit of Bitcoin and a negative development that will affect the market in general can turn the whole market upside down.