Ether's Decline Against Bitcoin Sparks Debate Among Traders

According to Cointelegraph, Ether, the second-largest cryptocurrency by market capitalization, has experienced an 18% decline against Bitcoin over the past six weeks. Despite this downturn, some traders caution against dismissing Ether, often referred to as 'the world computer.' Crypto trader Merlijin The Trader emphasized the potential of Ethereum, stating that being bearish on it now could be a mistake. He highlighted the undeniable momentum of Ether and suggested that a significant move is imminent. At the time of reporting, the ETH/BTC ratio stands at 0.0332, reflecting a 17.5% decrease since December 5, when Bitcoin reached the $100,000 milestone for the first time. During the previous bull market cycle, the ETH/BTC ratio hit a low of 0.03 in March 2021 before climbing to 0.077 two months later. In the same period, Ether's price surged by 110%, reaching $3,817. Some analysts believe that Ether could benefit from Bitcoin's increasing adoption. Thomas Fahrer, co-founder of Apollo, suggested that if the Strategic Bitcoin Reserve is implemented following Donald Trump's inauguration, it could propel Bitcoin towards $1 million in this cycle, potentially boosting Ether to $4,000. Ether's highest price in the past year was $4,066 in March, according to CoinMarketCap. Ether briefly tested the $4,000 level in December, a crucial support point necessary for challenging its all-time high of $4,878 from November 2021. However, it failed to maintain this level and has since fallen below another key support at $3,500, currently trading at $3,365. Meanwhile, Bitcoin has rebounded above $100,000, trading at $100,947 after fluctuating around this level since December. Concerns have arisen among some analysts regarding the Ethereum Merge, which has not unfolded as anticipated by market participants. Financial analyst Rajat Soni noted that Ethereum was expected to become deflationary following the Merge in September 2022, but the supply has nearly returned to pre-Merge levels. This article does not offer investment advice or recommendations. Readers should conduct their own research before making investment decisions.