Ethereum outperforms Bitcoin in September ahead of The Merge, with Ethereum’s second-largest cryptocurrency market cap increasing 61% against Bitcoin since June.
Below is a chart showing the Ethereum price against Bitcoin over 2018 ETH finally reached the 0.077 BTC mark, which was not seen since January 2022. This is only 12% away from a 4-year-high.
The Flippening
This bullish sentiment could revive the hope of a Flippening in which Ethereum surpasses Bitcoin market cap.
To achieve this, Ethereum must increase by another 100% in order to reach $3,750. This price target is 23% lower than its historic all-time high of $4800, which it reached in November 2021.
Source: TradingView
Ethereum hit a high of 0.15 BTC at the end 2017 but has struggled to recover 0.1 BTC since February 2018. The market seems to be embracing smart contract-enabled Blockchain over Bitcoin as the news of the Merge is becoming more than a pipedream, at least for the near term.
Below is a chart that compares Ethereum’s price to the US Dollar and Bitcoin. It is evident that Ethereum is rising faster against Bitcoin than against the dollar at the moment, which indicates a strong position on the wider crypto market.
Source: TradingView
Market dominance
As Bitcoin is falling, Ethereum’s overall market dominance is rising. Glassnode’s chart below shows the strength of Ethereum’s overall market dominance. It is at its highest level since December 2021.
Source: Glassnode
Other metrics like the number of active addresses or transactions, Ethereum is also dominant. Both metrics started to rise around July. Ethereum now has almost 100k active addresses, compared to its rival Bitcoin.
Source: Glassnode
Source: Glassnode
Hopium engaged
A key indicator could indicate that the Ethereum resurgence may be short-lived. Over the past few months, Ethereum levels on exchanges have increased while Bitcoin levels are down significantly. This may suggest that investors seeking a long-term investment are not looking for Ethereum dominance, but speculation on The Merge.
Source: Glassnode
Another chart shows the strike price of Ethereum options when out-of-the money calls are receiving huge open interest. High volume strike prices can reach $10,000 for ETH. This would be an increase of 455% over the current price. These calls are most likely part of a more complicated trading strategy in which the trader also shorts and buys puts at lower strike prices to minimize risk.
Source: Glassnode
It is clear that Ethereum is currently outperforming Bitcoin. This is because users interact with the network, rather than HODLing.
Although the increasing price of Ethereum on exchanges tempers this sentiment, an increase in coins on exchanges is not a perfect indicator.
We have just one month to find out if The Merge really is the catalyst that will finally turn Bitcoin around.
Ethereum leads the charge against Bitcoin with a 61% increase since June — Flippening price target at 3,750 CryptoSlate.
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