beincrypto.com
The Ethereum (ETH) price increased yesterday and nearly broke out above its 2023 highs today.
In contrast, the Bitcoin (BTC) price decreased since yesterday and fell below $45,000 today.
Ethereum Pumps on Bitcoin ETF News
Yesterday, the SEC tweeted that the Bitcoin ETF has been approved. However, shortly afterward, SEC chair Gary Gensler declared that the social media account was compromised and a decision on the Bitcoin ETF had not been made yet.
The price movement for BTC and ETH (green) has diverged since the announcement. While the ETH price has increased by 5%, BTC has fallen by 4%.
On-chain data shows that over the past 24 hours, a whale borrowed $11 million worth of BTC from the AAVE lending protocol and swapped it for $11 million worth of ETH. On-chain data also shows that ETH whale holdings are increasing at an unprecedented rate.
Smart Money flows also show that there has been more than $23 million flowing into ETH over the past 24 hours.
What Do the Analysts Say?
Cryptocurrency traders and analysts on X believe that the narrative has shifted, and a flow of funds from Bitcoin to Ethereum has started.
Alex Kruger stated that the ETH/BTC bottom is likely in:
Most components for an $ETHBTC bottom are here: – narrative shift: from BTC ETF to ETH ETF – upcoming events: EigenLayer airdrop – chart: 50% correction + fakeout of 2022 lows – sentiment: extreme pessimism
Will Clemente tweeted a chart of ETH/BTC, which shows a deviation below the 2022 lows.
Finally, Cold Blooded Shiller suggests that the narrative will switch to an ETH ETF, causing the price to pump.
Bitcoin Dominance Rate (BTCD) Prediction: Will Altseason Commence?
The 3-day chart for the BTCD shows that the price has increased inside an ascending parallel channel since November 2022. Such channels usually contain corrective movements, meaning a breakdown from it is likely.
BTCD trades in the lower portion of this channel, further aligning with the possibility that a breakdown will follow.
Additionally, the 3-day Relative Strength Index (RSI) gives bearish signs.
The RSI is a momentum indicator traders use to evaluate whether a market is overbought or oversold and whether to accumulate or sell an asset. Readings above 50 and an upward trend suggest that bulls still have an advantage, while readings below 50 indicate the opposite.
The 3-day RSI has fallen since generating a bearish divergence (green), coinciding with the BTCD top. If the BTCD breaks down from the channel, it can fall by 10% to the closest support at 48.50%. This could be the catalyst for a minor altseason.
Despite this bearish BTCD price prediction, reclaiming the channel’s midline can trigger an 11% increase to the channel’s resistance trend line at 60%.
For BeInCrypto’s latest crypto market analysis, click here.