Ethereum Trading At 40-Month Lows Versus Bitcoin: Is This An Endorsement Of BTC?

Ethereum
is
firm
when
writing
but
continues
to
underperform
versus
Bitcoin.
Though
ETH
is
floating
above
$2,400,
and
may
even
break
above
$3,000
in
the
coming
years,
the
rapid
strengthening
of
the
world’s
most
valuable
coin,
on
the
other
hand,
might
push
the
ETH/BTC
ratio
to
multi-month
lows.

ETH
Struggling
Versus
Bitcoin,
ETH/BTC
Ratio
Drops
To
A
40-Month
Low

As
of
September
20,
IntoTheBlock
data
reveals
that
ETH
is
trading
at
the
lowest
level
versus
Bitcoin
in
over
40
months.
This
trend
clearly
shows
that
the
market,
even
with
the
engagement
of
institutions,
is
bullish
on
BTC.

Interestingly,
ETH
continues
to
underperform
despite
the
approval
of
spot
Ethereum
ETFs
for
trading
in
July
2024.
The
approval
of
these
complex
derivatives
allowed
institutions
to
get
exposure
to
the
second
most
valuable
coin
within
the
law’s
confines
while
not
breaking
the
bank
as
they
did.

Previously,
institutions
in
the
United
States
seeking
to
buy
ETH
could
only
do
so
by
purchasing
Grayscale
ETHE
shares.
The
problem
is
that
fees
were
higher
when
the
financial
world
didn’t
know
the
regulatory
status
of
ETH.
Although
nothing
has
changed,
the
approval
of
spot
Ethereum
ETFs,
preventing
issuers
from
staking
coins
bought
by
clients,
was
seen
as
a
win.

The
United
States
Securities
and
Exchange
Commission
(SEC)
has
yet
to
issue
an
official
statement
endorsing
ETH
as
a
commodity
similar
to
Bitcoin.
However,
the
Commodity
Futures
Trading
Commission
(SEC)
has
repeatedly
stated
that
ETH
is
a
commodity.

With
ETH
sliding
versus
BTC,
IntoTheBlock
analysts
are
convinced
that
institutional
investors
are
confident
of
Bitcoin’s
prospects.
Specifically,
they
pointed
to
Bitcoin’s
relative
stability
compared
to
Ethereum,
an
asset
with
a
higher
risk-reward
profile.

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Will
Ethereum
Find
Support?

Even
with
this
assessment,
it
should
be
noted
that
Bitcoin
remains
a
transactional
layer,
riding
on
its
first-mover
advantage.
On
the
other
hand,
Ethereum
is
the
first
smart
contracts
platform,
and
hosts
various
innovations
ranging
from
DeFi,
NFTs,
and
is
now
driving
tokenization.

Earlier
on,
Larry
Fink,
the
CEO
of
BlackRock,
said
real-world
asset
(RWA)
tokenization,
most
of
which
is
done
on
Ethereum,
will
rise
to
command
a
trillion
in
market
cap.
BlackRock
has
issued
BUIDL,
a
product
tokenizing
United
States
Treasuries,
on
Ethereum.

It
remains
to
be
seen
whether
ETH
will
recover
versus
BTC.
Looking
at
the
daily
chart,
the
trend
appears
to
be
shifting,
at
least
in
the
immediate
term.
The
double-bar
bullish
formation
of
September
18
and
19
has
been
confirmed
today.

At
the
same
time,
ETH
seems
to
be
strengthening,
turning
the
corner
from
the
61.8%
Fibonacci
retracement
level
of
the
2020
to
2021
trade
range.

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