Is Ethereum Going To Keep Underperforming Bitcoin? Here's What Technical Analysis Says

Cryptocurrency industry expert Benjamin Cowen shared his insights on the ratio between Ethereum ETH/USD and Bitcoin BTC/USD, predicting that the altcoin market may be nearing a significant turning point.

What Happened: In his latest podcast episode, Cowen noted that the ETH/BTC ratio has finally reached the 0.04 level, a target he set years ago. This milestone marks the upper end of his predicted 0.03-0.04 range, which he believed would be hit by the end of the halving year.

Despite Ethereum’s recent developments like the transition to proof-of-stake and deflationary mechanisms, Cowen argues that monetary policy has trumped these factors in determining ETH’s performance against Bitcoin.

Cowen also highlights the importance of Bitcoin dominance, which he expects to peak at around 60% before a trend reversal. Bitcoin dominance currently stands at 56%. He suggests that the altcoin market’s struggles may continue until this dominance level is reached.

Also Read: Why Bitcoin’s Price Action Is Concerning And ‘Capital Preservation’ Key

Why It Matters: Cowen suggests softening the bearish bias on the ETH/BTC ratio but remains open to the possibility of it dropping below 0.04 before year-end. He bases this on historical patterns, noting that in previous cycles, the ratio bottomed after interest rate cuts and Federal Reserve balance sheet expansion – events that haven’t occurred yet this cycle.

Interestingly, Cowen points out that Ethereum’s supply has recently turned inflationary, which could paradoxically signal a bottom for the ETH/BTC ratio if this trend continues.

While maintaining his view that ETH/BTC could see lower levels, Cowen emphasizes that the ratio is likely approaching its bottom, whatever that may be. He expects ETH/BTC to rise in 2025 but cautions that there’s still time for further downside in the near term.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next:

• Ethereum Down 8% Last Month, Solana Up 9%: What Is Going On?

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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