Ethereum (ETH) has seen a significant increase in value against Bitcoin (BTC) by over 20% within 72 hours, sparking predictions of continued growth. This follows the speculation of a potential Ethereum spot ETF after the approval of spot Bitcoin ETF applications.
Data from TradingView indicates that the ETH/BTC ratio rose from the year’s low of 0.0478 on January 9 to 0.0587, with ETH/USD reaching its highest levels since mid-2022. At the time of writing, ETH/BTC was trading at 0.06041.
The weekly Moving Average Convergence Divergence (MACD) indicator for ETH/BTC shows a bullish trend, attracting the attention of popular analysts. Despite Bitcoin’s rise to its highest levels since December 2021 following ETF approvals, the surge was short-lived, and Ethereum’s comeback could overshadow Bitcoin.
Rumors of Ethereum potentially launching its own ETF product in the U.S. later in the year have fueled the upward momentum. BlackRock’s CEO Larry Fink hinted at the value of an Ethereum ETF in a CNBC interview, while analyst Scott Melker echoed the sentiment, highlighting Ethereum’s growing prominence.
Michaël van de Poppe of MNTrading suggested Ethereum continues to gain ground against Bitcoin as part of the overall crypto market cap. With the altcoin bull market beginning, Bitcoin dominance may have peaked before the upcoming halving event. Van de Poppe also anticipates institutional investment in Bitcoin could lead to a supply squeeze, shifting focus away from the BTC/USD pair until the halving in April.