Published
2 years ago on
October 10, 2021
Ethereum On a Steady Uptrend
Back at the beginning of September and a couple of weeks after the August EIP-1559, Standard Chartered released a report called Ethereum Investor Guide and its conclusion was that the asset in question could potentially reach anywhere between $27k and $35k. This research piece did end up circulating for a few days in crypto news outlets, Ethereum focused groups etc., but the document’s date of release happened to coincide with that nasty flash-crash (7th Sep; ETH’s price was slashed by roughly $900 or 25% within a few hours) and the sentiment in crypto immediately flipped to Extreme Fear. Ethereum Investor Guide seemed to quickly disappear from conversations and the community moved on with their lives.
Now, the price target range from the report does seem steep or to be frank, highly unrealistic in this cycle as ETH’s value would have to 10X from here to reach the prediction, but what attracted my attention was the claim that Ethereum is likely to perform better than BTC (BTC/USD) in the coming months (ETH to BTC ratio predicted in the paper at 0.16 with the current ratio at its lowest since August this year). Undoubtedly, Standard Chartered is a serious international bank and it is going to be very curious to see how their report ages in the last quarter of this year and going into the next one.
Is ETH (ETH/USD) going to outperform the King of Crypto and is The Flippening still in store for us, the crowd of Ethereum investors? Let’s find out if there are any clues in the charts and on-chain data, that could possibly point us in the right direction.
PRICE ACTION AND ON-CHAIN DATA
In order to get the right answers we need to start by asking the right questions and these in my mind would be: what is the likelihood of ETH performing better than BTC based on available data and what trajectory and direction is most likely for the second largest cryptocurrency (ETH market cap: $426B compared to Bitcoin’s $1035B; ETH domination at 17.7% compared to BTC’s 42.9%).
First of all, looking at the ETH/BTC (ETH/BTC) chart we must identify 0.65 as our most significant level (thick purple line) that has been respected as both support as well as resistance since May this year.
