- Ethereum is struggling to match the momentum that Bitcoin is currently seeing
- The benchmark cryptocurrency has been gaining tremendous ground over Ethereum and the rest of the crypto market, with altcoins being unable to match its growth
- This has put any hopes of an imminent “altseason” on pause, with BTC dominance continuing to rise daily
- Ethereum’s performance against its Bitcoin trading pair has been quite dire as of late and may indicate that downside is imminent against USD as well
- This could have dire implications for the altcoin market, and DeFi in particular
- One trader explained in a recent tweet that he is still bullish on ETH despite its poor performance, expecting all-time highs in 2021
Ethereum has seen some rough price action as of late, with the crypto being fully exposed to Bitcoin’s downside without being able to capture any of its upside.
This has caused its price to crater lower over the past few weeks against Bitcoin, with the ETHBTC pairing looking incredibly bearish as it continues sliding below key support levels.
Despite its weakness against BTC, its USD pair has been fairly stable and has shown some tempered signs of strength.
One analyst is optimistic for Ethereum’s outlook in 2021, noting that he expects it to break its all-time highs and see a strong uptrend that matches that seen by Bitcoin.
Ethereum Stagnates as Bitcoin Continues Taking Flight
At the time of writing, Ethereum is trading up marginally at its current price of $630. This is around the price at which it has been trading throughout the past few weeks.
The selling pressure laced throughout the upper-$600 region has caused it to see multiple strong selloffs, and it may be quite some time before it posts a clean break above this price region.
Right now, ETH’s USD price is being hampered by its weakness against its Bitcoin trading pair. Until it can gain ground against BTC, its stagnation may persist.
Here’s Why Ethereum’s High Time Frame Outlook Favors a Move to All-Time Highs
One trader explained in a recent tweet that he is still optimistic on Ethereum’s mid-term prospects, noting that he is watching for a move to all-time highs in 2021.
“ETH / USD: This chart nearly 2 months old now, feel fun tracking this and watching PA play out of the macro term, very bullish going into 2021. Expecting ETH to break ATH next year… Current macro trend I see no reason to be bearish and honestly I feel very bullish HTF.”
Image Courtesy of Cactus. Source: BTCUSD on TradingView.
For now, Bitcoin remains the star of the market, but this could easily change in the year ahead if Ethereum and other altcoins can gain some ground on their BTC trading pairs.
Featured image from Unsplash. Charts from TradingView.