- Ethereum has been able to catch up to some of the gains posted by Bitcoin as of late, but it still has a long way to go before it breaks its trend of underperformance
- Yesterday, the cryptocurrency saw a swift rally past $460 that came about in the absence of any BTC movement
- This was a promising push higher, and it has yet to surrender much of these gains
- One analyst is now looking towards $500 as a critical level to break
- He notes that a 10% move higher will lead ETH above this level and make it a far better value play than BTC
Ethereum has seen some immense strength throughout the past few days, rallying independently of Bitcoin as the aggregated DeFi sector shows signs of catching a second wave of momentum.
If DeFi tokens continue their ascents and rekindle the farming craze, it could drive massive demand to the Ethereum network – in turn enhancing the cryptocurrency’s fundamental strength.
One trader is watching for ETH to begin outperforming BTC if it can break above $500. He notes that a break above this level would spark some serious upside.
He also added that, at the moment, Bitcoin’s upside might be “relatively capped” as compared to that of Ethereum.
Ethereum Holds Above $460 as Uptrend Stalls
Yesterday, Ethereum saw a massive push higher that led it up to $465. This momentum rapidly stalled, and ETH has yet to break its weekly highs of $469 set just four days ago.
At the time of writing, ETH is trading up just over 2% at its current price of $461. Its steady advance has been positive, but it still has multiple hurdles to surmount before it can break $500.
There appears to be massive resistance around $470, as well as $490. Once these two levels are shattered, it’s open skies for the crypto.
Legendary Trader: BTC Upside Potentially Capped Compared to That of ETH
One legendary pseudonymous trader, known for his massive seven-figure Bitcoin bets, stated in a recent tweet that he believes Bitcoin’s upside may be capped compared to Ethereum.
However, he believes that breaking $500 is crucial for this to be a tradeable sentiment.
“Think BTC upside might be relatively capped when compared to ETH if ETH is able to break 500…”
Image Courtesy of Flood. Source: ETHUSD on TradingView.
Unless Ethereum fails to break above its near-term resistance levels, its upside potential is quite significant.
Featured image from Unsplash. Charts from TradingView.