Ethereum
Bitcoin Rally leaves Ethereum far behind! For what?
Thu May 16, 2024 ▪ 3 min read ▪ by Eddy S.
Crypto markets have had a bullish week, but Ethereum appears to be struggling to keep up with Bitcoin’s rapid pace. While the total market cap increased by 5.5%, ETH failed to fully capitalize on this bullish momentum.
Crypto: Ethereum struggles to follow the uptrend
ETH closed above $3,000 over five days ago and has underperformed BTC by 22% since the start of 2024. This trend highlights the difficulty Ethereum faces in maintaining its value compared to Bitcoin. Bitcoin. Additionally, US macroeconomic data appears to support the rally in some scarce assets.
As a result, markets reacted positively to Consumer Price Index (CPI) data, which showed a 3.4% year-on-year increase in April, in line with market expectations. Unfortunately, this indicator was not enough to boost Ethereum as is currently the case with the queen of crypto.
Growing uncertainty among investors
Some crypto analysts believe that the upcoming SEC decision on May 23, 2024, regarding VanEck’s application for a spot Ethereum ETF, is one of the main reasons for Ethereum’s inability to break the resistance level of 3 000 $. The uncertainty surrounding this event leads traders to delay their investment decisions until the outcome is more certain.
However, despite the long-term optimism regarding Ethereum’s prospects, a rejection by the SEC could lead to a short-term market correction. Eric Balchunas, senior ETF analyst at Bloomberg, expressed doubts on the approval of an Ethereum ETF in 2024, given the regulator’s cautious approach towards products that could be classified as securities, particularly those that include native staking services.
In conclusion, although the cryptocurrency markets had a positive week, Ethereum has yet to prove its ability to keep up. market leaderBitcoin, in this bull run.
Maximize your Cointribune experience with our “Read to Earn” program! Earn points for every article you read and access exclusive rewards. Sign up now and start earning benefits.
Click here to join “Read to Earn” and turn your passion for crypto into rewards!
Eddy S.
The world is evolving and adaptation is the best weapon to survive in this undulating universe. Basically a crypto community manager, I am interested in everything directly or indirectly related to blockchain and its derivatives. In order to share my experience and raise awareness of a field that fascinates me, there is nothing better than writing articles that are informative and relaxed at the same time.
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.