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Ethereum (ETH), the leading altcoin, is gaining traction among investors on the cryptocurrency market as the asset has gained market share over Bitcoin (BTC) in spot trading volumes. As highlighted by CryptoQuant, the Ethereum-to-Bitcoin ratio has hit a yearly high amid a spike in volume.
Ethereum trading volume surpasses Bitcoin by 3x
Notably, a comparison of ETH’s performance against that of BTC shows that Ethereum has bounced back from its low levels back in April. The altcoin hit its lowest level back then, setting a six-year low point as it weakened against Bitcoin.
However, Ethereum has now recovered, with the ETH-to-BTC ratio reaching the highest level this year at 0.0368. Although Ethereum’s recovery remains lower than its 2017 performance, where it peaked near 0.15, the development signals bullish momentum for ETH.
This has been reflected in the actual trading of Ethereum and Bitcoin on exchanges recently. Last week, Ethereum’s spot trading volume surpassed that of Bitcoin by nearly three times. This suggests that more investors are actively trading Ethereum right now, compared to Bitcoin.
It signals that in the short term, Ethereum is outshining Bitcoin, not only in spot trading but also in speculative bets. This is because the ETH-to-BTC perpetual futures open interest ratio is now pegged at 0.71, the lowest it has reached in the last 14 months.
Bullish outlook for Ethereum price
This bullish indicator could trigger an uptick in the price of Ethereum, which has managed to stabilize above $4,000 in the last 10 days. Despite shedding 3.88% of its value in the last seven days, the coin is still bullish and might surge toward the $5,000 level.
As of press time, the Ethereum price was changing hands at $4,223.45, a 2.14% decline in the last 24 hours. The performance of ETH aligns with the broader sentiment as the crypto market anticipates Jerome Powell’s speech.
Powell’s comments as it concerns the rate cut could impact the crypto market, resetting the risk appetite of investors.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team