Ether’s underperformance against Bitcoin may be nearing its end, with crypto analysts suggesting Ether is inching closer to the $4,000 psychological price point.
“I think the ETH/BTC collapse is over (or nearly over), and it should go higher over the next 6-12 months,” Into The Cryptoverse founder Benjamin Cowen said in a Dec. 4 X post.
Ether to strength against Bitcoin over next two months
When the ETH/BTC ratio — a metric showing Ether’s (ETH) relative strength to Bitcoin (BTC) — reaches a possible low point, many traders will begin speculating on a surge in Ether.
“I said my worst-case scenario was 0.03 and ETH/BTC went to 0.03187,” Cowen said.
At the time of publication, the ETH/BTC ratio is 0.03811 as Bitcoin crossed the $100,000 mark, according to TradingView data. The ETH/BTC pair hit its all-time low of 0.00217 in December 2015.
He added that “historically ETH/BTC usually starts going up” in December or January.
The ETH/BTC ratio is up 9.14% over the past 30 days. Source: TradingView
It comes as Ether clocked a 5.5% gain over the past 24 hours, falling slightly short of tapping the $3,900 price level. At the time of publication, Ether was trading at $3,846, according to CoinMarketCap data.
Meanwhile, Bitcoin recorded a 5.5% gain during the same period, with its current price at $101,345.
Pseudonymous crypto trader DCInvestor told their 250,800 X followers that “ETH has the preeminent lane for a reason, and it’s about to remind people why.”
ETH $4,000 price will surprise ‘no one’
Bitwise Invest CEO Hunter Horsley said that “no one will be surprised when ETH crosses $4,000.”
“There’s a lot of great L1s, but there’s room for multiple. Android, iOS, and Windows all co-exist and make different tradeoffs,” Horsley said in a Dec. 4 X post.
“The pie is growing, and ETH has a big lane,” Horsley added.
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Meanwhile, pseudonymous crypto trader MisterSpread said that reaching the $4,000 price level may result in a short squeeze pushing Ether’s price a further 25% higher.
“Once ETH breaks the $4,000 area, there is a high chance we see a God candle to $5,000,” MisterSpread said in an X post.
No ‘serious competition’ for Ethereum in the short term
“Shorts kept & keep piling up here, so watch the liquidation unfolds above $4k,” MisterSpread added.
Galaxy Digital head of research Alex Thorn recently told Cointelegraph Magazine he does not see any serious competition for Ethereum at this time.
“Ethereum is the world’s most decentralized, valuable and mature general-purpose blockchain,” Thorn said.
“I don’t see any blockchain ecosystem, including Bitcoin and Solana, coming close to unseating the Ethereum ecosystem as the mecca for decentralized applications.”
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.