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Ethereum price is back above the $3,800 price level on the back of a 5% increase over the past 24 hours. Interestingly, this increase in Ethereum prices came amid… A simultaneous increase in the performance of ETH against BTC In recent weeks.
According to cryptocurrency analyst Benjamin Coyne, this recent price action may actually be the beginning stages of an increase in the price of Ethereum versus Bitcoin over the next six to 12 months.
ETH/BTC pair analysis
The last two weeks It was highlighted by uniformity Bitcoin price fell below the $99,000 price level as investors continued to wait for a breakout above $100,000. Amid this Bitcoin price correction, the Ethereum price started to increase significantly from the $3,340 level on November 26. This rally has allowed Ethereum and several other altcoins to outperform Bitcoin, leading to speculation about whether the cryptocurrency market is now in a critical situation. The initial stages of the long-awaited altcoin season.
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According to technical analysis From famous cryptocurrency analyst Benjamin Cowen This could be the first recovery phase for the ETH/BTC pair. Taking to social media platform
Back in 2023, Quinn He expected a significant decline In the ETH/BTC pair. At the time, ETH/BTC was trading around 0.066, but he predicted it could fall by more than 45% at that point. Interestingly, this prediction has come true as Ethereum’s valuation relative to Bitcoin has been declining since the last quarter of 2023 until recent weeks.
Fast forward to December 2024; Ethereum has rebounded and is performing well against Bitcoin. In particular, the price of the ETH/BTC pair is currently around 0.0396, up 24% from the 2024 low of 0.03187. This rise prompted Coin to reconsider the ETH/BTC pair, and his outlook became positive.
Historical trends point to a seasonal rebound
Cowen highlighted Ethereum’s historical trends, noting that the ETH/BTC pair often gains momentum in December or January. If this trend continues and ETH/BTC gains momentum in December, Ethereum may already be in the early stages of recovery. However, if we wait until January, a break of the previous lows of 0.03187 and perhaps 0.03 remains possible but increasingly unlikely. He added that within a few months, the specific bottom may become irrelevant.
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Looking ahead, Cowen expects a 6-12 month horizon for significant gains in the Ethereum/Bitcoin pair. Such a move would be highlighted by Ethereum’s price outperforming Bitcoin’s price and the full altcoin season.
At the time of writing, Ethereum is trading at $3,845. Bitcoin, on the other hand, The above has finally broken The $100,000 mark and is currently trading at $103,000. The ETH/BTC pair is currently trading at 0.03755.
Featured image created with Dall.E, chart from Tradingview.com