Ethereum Sees Decline Against Bitcoin (BTC), Faces Challenges in Short-Term Dominance

ETH/BTC Performance:

Ethereum (ETH) has experienced a decline against Bitcoin (BTC), reaching its lowest point since May 2022, according to AMBCrypto's analysis of the ETH/BTC chart. Over the last 365 days, ETH's price against BTC dropped by 32.68%, and in the last six months, it fell by 18.80% to 0.048 BTC.

Source: TradingView

Impact of Fake ETF Approval News:

The recent decline in ETH's performance against BTC is attributed to the optimism surrounding the potential approval of Bitcoin ETFs. The market saw increased volatility after a fake announcement on the compromised U.S. SEC's X account claimed approval of all spot ETFs. Despite the chaotic market conditions, ETH gained value.

Current ETH/BTC Performance:

At the time of reporting, ETH's price is $2,380, reflecting a 3.37% increase in the last 24 hours. The ETH/BTC value has changed, rising to 0.052 BTC, a 2.05% increase against Bitcoin. However, on a Year-To-Date (YTD) basis, Bitcoin has outperformed Ethereum, with ETH seeing a 0.95% increase compared to Bitcoin's 4.05% jump since the beginning of the year.

Factors Influencing Short-Term Dominance:

ETH's ability to dominate BTC in the short term depends on the resolution of the SEC regarding Bitcoin ETFs. The recent compromise of the SEC's X account led to speculation about a potential delay in the decision. If the SEC endorses Bitcoin ETFs, ETH might face challenges displacing BTC's dominance.

Upcoming Ethereum Upgrade:

Despite short-term challenges, there is optimism for Ethereum's dominant season in Q1 2024. The completion of the Ethereum Dencun upgrade between January and February is anticipated to improve the security and scalability of the Ethereum blockchain. However, there are concerns about a slowdown in development activity on the blockchain.

Market Cap Comparison and Holder Confidence:

ETH's market cap in BTC terms could be affected by upcoming developments, potentially influencing a bullish trend. Despite inconsistencies, ETH has a larger number of holders (112.18 million) compared to Bitcoin (52.64 million), indicating continued confidence in its potential.

Source: Santiment

Ethereum (ETH) has faced a decline against Bitcoin (BTC), reaching its lowest point since May 2022. The decline is attributed to the optimism surrounding the potential approval of Bitcoin ETFs. Despite the recent chaos in the market, ETH gained value. The short-term dominance of ETH against BTC depends on the resolution of the SEC regarding Bitcoin ETFs. While Ethereum faces challenges, there is optimism for a dominant season in Q1 2024, driven by the completion of the Ethereum Dencun upgrade. The number of ETH holders remains higher than Bitcoin, reflecting continued confidence in its potential.