Ethereum Price 2023 Breakthrough: Surpassing Bitcoin, Altcoin Surge Next?
06 December 2023 - 10:00PM
NEWSBTC
For the first time in 2023, the Ethereum price has outperformed
Bitcoin across several metrics, hinting at a fundamental shift in
market structure. The second cryptocurrency by market
capitalization follows the general sentiment in the sector, setting
new yearly highs. Related Reading: XRP Greed Index Soars, Backed By
Robust $1.3 Billion Volume – Good For Price? As of this writing,
the Ethereum price trades at $2,300 with a 4% profit in the last 24
hours. Over the previous week, the cryptocurrency recorded a 10%
profit, with most of the altcoin sector still lagging the current
price action. Ethereum Price Signals Strength For Altcoin Sector? A
report from BlockScholes posted by the options platform Deribit
indicates a spike in the Ethereum price volatility back to its
levels above Bitcoin’s. ETH’s shift in market structure hints at
traders and institutions gearing up for early 2024. The report
claims that the potential approval of a spot in the US ETH Exchange
Traded Fund (ETF) is behind the current price action. This new
dynamic suggests that the bullish sentiment above this event
slipped from Bitcoin to Ethereum. As seen in the chart below,
Ethereum records a higher return than Bitcoin for the first time
since July 2023. The surge in returns, BlockSholes said, allowed
ETH to buck a persistent downtrend, but overall, the
cryptocurrency’s performance remains in its yearly range. In other
words, the Ethereum price is doing better than in other periods
across 2023 but has yet to resume a bullish momentum concerning
Bitcoin. However, the report noted: This reversal is not yet strong
enough for us to be confident in a return to the market structure
that we had previously come to expect, but does indicate that the
effects of speculative bets around the application of a spot ETF
are not limited to BTC. This is echoed by the implied volatilities
for both assets across the term structure, which forecast similar
volatility levels for both assets. What Favors An Altcoin Rally In
addition, the report noted a decline in the US dollar as measured
by the DXY Index. Risk assets can thrive as the currency trends
lower, potentially hinting at a loose monetary policy by the
Federal Reserve (Fed). If Ethereum continues gaining bullish
momentum from its current levels, the entire altcoin sector could
see further profits. The report indicates that most entities and
traders are pricing in a “risk event” by the end of January 2024.
Related Reading: Bloomberg Experts Forecast Timeline For Spot
Ethereum ETF Approval Thus, Bitcoin and Ethereum may see a more
significant rally by that time. Whichever coin prevails might
reveal more information on the subsequent trend; if Ethereum
outperformed, then altcoins are more likely to follow. Cover image
from Unsplash, chart from Tradingview
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Jun 2024 to Jul 2024
Ethereum (COIN:ETHUSD)
Historical Stock Chart
From Jul 2023 to Jul 2024