Bitcoin’s ETF and halving hype have increased demand for BTC compared to Ethereum in recent weeks.
The price of Ethereum’s native token, Ether (ETH), has reached a 15-month low against Bitcoin, the lowest since Ethereum switched to proof-of-stake (PoS).
The ETH/BTC pair dropped below its 200-week exponential moving average (200-week EMA), which has historically served as a reliable support level for ETH/BTC bulls.
The next downside target for ETH/BTC is around its 0.5 Fib line near 0.051 BTC, down about 9.5% from current price levels.
Institutional capital flow data reflects Ethereum’s weakness compared to Bitcoin, with Bitcoin-specific investment funds attracting $246 million year-to-date, while Ethereum funds have experienced outflows worth $104 million.
The buzz about a potential spot Bitcoin ETF approval in the U.S. and Bitcoin’s upcoming halving in 2024 are contributing to Bitcoin’s dominance over Ethereum.
The halving will reduce the block reward for Bitcoin miners, which historically has led to a bullish case by cutting new supply in half.
This article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.
