Bitcoin began this week with a 5%+ fall to around $53,000 on Monday. This stopped Ethereum’s rally with a bang, with Ether unable to break past the $4K mark. That has changed in less than 48 hours, with the whole market currently seeing green.
The leading cryptocurrency itself is up by nearly 4% in the past 24 hours, currently hovering around $57,000. Ethereum has broken the $4,000 mark and is riding high. In general, Bitcoin’s price has remained between $50,000 and $60,000 for the past few weeks, and according to experts, the short-term prospects look bleak.
Shift to ETH
It doesn’t take a genius to see that the market has fully shifted its attention toward Ethereum recently. Ether made a big jump and is currently all the rage with a record-breaking price past $4K. That’s almost double the price from a fortnight ago, in a time where Bitcoin just isn’t able to break past $60,000 again.
Blockchain data is pointing at a trend of selling among whales which can influence the market in a flash. The number of entities holding more than 1,000 BTC has dropped to a 5 month low of 1,943. The previous low was 2,237 back in February, which obviously shows that the decline continues. Whales are offloading their holdings, causing a bit of concern for bulls.
Retail investors have been struggling to drive the rally amid continued whale selling. When Bitcoin dropped from its high a few weeks ago, everyone believed in a new bull run that will take it even higher. While technical data from the past 24 hours suggests another great run, the drop in number of whales is a bit concerning.
On the other hand, Ethereum has been exceeding all expectations, cementing itself as the top alternative to Bitcoin.
It was always clear that Ether is a clear and present danger to Bitcoin. However, so far, the coin was unable to get past known obstacles until its recent run. The crypto market is divided between Bitcoin-led and altcoin-led regimes. Ethereum’s latest run has put 2021 firmly in alt season with a quarter of last year led by Bitcoin. The shifts in momentum between cycles is crucial for investors to optimize their profits.
While Bitcoin remains the benchmark for all altcoins, Ether may follow suit in the future. Bitcoin’s dominance is obviously fading, although it will take a miracle for Ether to reach the same heights.
Many have been wondering if now’s the right time to invest in ETH. While it looks ripe for the taking, we can’t help but point to the extreme volatility that can result in a sharp price drop. Ethereum is up over 400% since the beginning of 2021, so many are rightfully wary of putting money in ETH. With that being said, risk is a key piece of investment, so you may want to jump the gun on ETH right now and reap the rewards later.
With the run it’s been on, new heights can be expected, at least in the short run.