Ethereum Poised for Major Rally Despite Lagging Behind Bitcoin: Here’s When It Will Happen and ETH Target Price
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has seen lackluster performance compared to Bitcoin (BTC) in recent weeks. However, according to crypto trader Mags (@thescalpingpro), this trend is nothing new and Ethereum is gearing up for major upside in the coming weeks and months.
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Bitcoin Steals the Spotlight
In a recent Twitter thread, Mags explained that the spotlight has been on Bitcoin since the launch of the first Bitcoin spot exchange-traded fund (ETF). This has led to a “BTC only” narrative among crypto investors.
“While everyone is focused on Bitcoin, they seem to be forgetting what Ethereum is capable of,” Mags stated. He believes once the focus shifts back to Ethereum, there could be a “massive rotation” from Bitcoin to Ethereum.
Mags draws comparisons to Bitcoin’s rally from $15,000 to $24,000 and then $45,000, which happened rapidly after many investors were waiting on the sidelines. He believes a similar quick run-up could occur for Ethereum if momentum builds.
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Show more +Short-Term Weakness, Long-Term Strength
Over the short term, Ethereum has been underperforming Bitcoin. The ETH/BTC ratio has been in a clear downtrend since Bitcoin bottomed around $15,500. However, Mags points out that this is a recurring theme.
“This is not something we are witnessing for the first time. This has happened almost in every cycle,” he explained. Typically, Ethereum bleeds against Bitcoin during Bitcoin’s first leg higher and then outperforms later in the cycle.
Zooming out to the weekly chart, Ethereum is sitting at solid support after an extended downtrend against Bitcoin. Mags is “expecting a strong bounce” at these levels based on historical trends.
In the very short term, Mags warns that a wick below support reaching 5% lower is possible for Ethereum. However, he remains firmly bullish for the top altcoin over the coming year based on market cycles repeating themselves.
“If History Repeats ETH is going to $3000 & Beyond,” Mags concluded. With Ethereum appearing very oversold relative to market leader Bitcoin, traders like Mags could soon have their eyes set on a trip toward Ethereum’s all-time high near $4,800 in the not-too-distant future if buying returns to the crypto markets. For now, the crucial long-term support just below $2,000 remains key to hold.
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