Since August last year, Ethereum has shown a downward trend compared to Bitcoin, indicating that Bitcoin may be a more advantageous investment choice during this period. However, historical trends indicate that market trends may change at any time, and Ethereum may soon enter the accumulation stage
Since August last year, Ethereum has shown a downward trend compared to Bitcoin, indicating that Bitcoin may be a more advantageous investment choice during this period. However, historical trends indicate that market trends may change at any time, and Ethereum may soon enter the accumulation stage.
Ethereum Price Trends
The trading price of Ethereum is $1600, a 22% decrease from the price in August last year. On the contrary, Bitcoin rose by 8% during the same period. This is a common trend during bear markets, as investors tend to avoid risk and choose tokens with larger market values, making them more resilient when prices fall. Although Ethereum's market value reaches $187 billion, it is still far below Bitcoin's $525 billion.
During a bull market, as investors seek higher return assets, tokens with lower market values typically surpass Bitcoin again.
Ethereum price compared to Bitcoin
Comparing the value of Ethereum (ETH) with Bitcoin (BTC), it is evident that Ethereum has been trading in a declining channel since August last year. This pattern is manifested as a continuous decline in high and low points, usually indicating a bearish trend in the market.
The above figure highlights three different stages:
- Fundraising stage:At this stage, prices tend to stabilize, indicating that momentum may be about to change.
- Ascending channel:At this stage, prices undergo a significant reversal, usually in a parabolic trajectory, characterized by higher highs and lows.
- Allocation stage:In the final stage, prices stop rising, and investors usually use this stage to profit and liquidate their positions.
The accumulation stage is usually the ideal time for investors to convert Bitcoin into Ethereum. The characteristic of this stage is that the price stays at the bottom and then shows signs of reversal. Although Ethereum is still forming a relatively low point relative to Bitcoin and has not yet entered the fundraising stage, the previous cycle indicates that this situation may change soon.
Previous cycle review
Looking back at the previous cycle, Ethereum has been in a downward trend relative to Bitcoin for up to 17 months. The fundraising phase lasted from September 2019 to February 2020. According to the four-year theory, the market experiences a similar stage every four years, indicating that the fundraising stage should also arrive soon during this cycle. However, it is worth noting that each cycle is unique, and the price trend of ETH in the current cycle has not experienced a significant decline like the previous cycle, possibly due to changes in fundamentals and asset maturity.
Final idea
Although the accumulation stage of Ethereum has not yet been determined, its price may still fall further compared to Bitcoin. However, if based on the previous cycle, we may soon enter the fundraising stage. This stage typically provides excellent buying opportunities for Ethereum. Investors should closely monitor market dynamics and make wise investment decisions based on other factors.
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