Ethereum Underperforms Bitcoin As Miners Selloff Ethereum Holdings
Reports have claimed that Ethereum traders and investors have shifted their attention to Bitcoin after the coin’s recent underperformance.
The second leading digital asset has performed woefully in the market in the past few weeks compared to Bitcoin’s convincing performance. Ethereum in recent weeks has traded in the downward zone as it is still struggling to close the gap on its yearly high.
Meanwhile, Bitcoin is having a swell time in the market as the bulls have already taken charge, pushing the leading digital assets past a high seen in over a year. The coin will be hoping to break the present resistance to post a high last seen in 2017.
Bitcoin bullish momentum attributed to investor participation
It is no gainsaying if one should say Bitcoin’s current bullish run has pushed Ethreum and other altcoins further down in the crypto market. With investors pulling all their weights behind bitcoin, it is only a matter of time before discovering how it will affect the other coins in the crypto market.
Experts and analysts have predicted that investors would move away from Bitcoin in the coming days, putting their funds in other altcoins like Ethereum. One question that will remain on everyone’s lips is how high the leading digital asset can climb before that happens?
Different analytics platforms have various reasons for the latest happenings in the crypto market, but everything boils down to one common thing, an on-chain trend. Experts have also faulted Ethereum’s lagging on the decision of miners to sell their Ethereum holdings.
With Bitcoin enjoying a swell time in the market, Ethereum has been trying to move past the lower $400 region in the last few days. Ethereum was forced to trade at $380 yesterday after Bitcoin miners sold off a massive chunk of their holdings. But the buying pressure in the market allowed bulls to take charge and send the price back to $400.
Santiment says Ethereum miner’s balance has declined drastically
Experts have said that Ethereum needs to show more effort if it wants the bulls to take charge to send it back to its 2020 highs. Notably, the second leading digital asset needs to reclaim at least 20% of its price if it wants to return to the $490 high set when the Decentralized Finance was still bubbling.
With the release of Phase 0 of ETH 2.0 scheduled to launch any moment from now, analysts have said that might be the catalyst that will make the coin retake the top spot in terms of performance.
Miners have been one reason why the coin has not been able to gather momentum as they have been offloading their holdings in massive amounts in the last few days. Santiment, an analytics platform, reported days ago that Ethereum’s miner balance had dropped significantly over the previous few days.
“The Ethereum miners have been dumping, and it appears that last week’s increased on-chain activity and trader FOMO has slowed,” Santiment said.
Ethereum might continue to underperform bitcoin if miners refuse to stop selling their Ethereum holdings massively. Ethereum is presently up by 4.25% in the last 24 hours and is currently trading at $405.
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