Ethereum (CRYPTO: ETH) recently surpassed the expansion of Bitcoin (CRYPTO: BTC).
What happened: According to CoinMarketCap data, Ether earned over 63% cost for Bitcoin from 0. 030343 BTC consistent with ETH to 0. 04957 In terms of dollar cost, the cost of Ethereum higher by more than 62%, achieving its existing cost of more than $2767, while Bitcoin’s cost is more than 1% higher than its current value of more than $53475.
According to technical analyst Katie Stockton of Fairlead Strategies, the coin may be worth $3020 below.
He explained that “the rupture earlier in the month dictates a bullish bias beyond the coming weeks, having given a mesurized motion projection of around $3,000. “
This would result in a 33% disadvantage from the component’s current value of more than $2757.
What’s more: JPMorgan analysts explain why Ether is developing faster than Bitcoin is that, although Bitcoin is more of a gold-competing product as a price reserve than as a currency, ether is the backbone of crypto-native economics and a medium. exchange.
The bank’s investigation also highlights a recent crypto liquidity surprise that hit Bitcoin the most. “This liquidity surprise was born in the derivatives market, which led to giant liquidations.
The effect was more debatable on bitcoin futures, where settlements of net buy positions since that time total 23% of ex ante open interest; That said, Ether is not scheduled with 17% of the net long settlements during the same period,” the note says.
The largest cryptocurrency at the moment also less in derivatives than the world’s first cryptocurrency, meaning that “the underlying basis of long exposure [in ether] less in leverage”, which decreases the relevance of surprise liquidity and settlements in the first place.
The research also explained that the Ethereum network handles more transactions than Bitcoin, thanks in component to its ecosystem of monetary applications.
See also: How to use Ethereum (ETH)
JPMorgan believes this has a significant effect on the price of the currency.
“As a result, a higher proportion of Ether tokens behaves as very liquid than Bitcoin, 11% versus 4% according to some estimates over the past month. Array. In a market with particularly high money sales, it is credible that the underlying long exposure base depends less on leverage in the form of futures and swaps. “