Bitcoin (BTC) has maintained a commanding lead over Ethereum (ETH), as evidenced by the current BTC/ETH ratio.
According to recent data, the ratio stands at 18x, a figure that harks back to two-year highs.
This indicates that, despite the rally seen in various altcoins, BTC continues to outpace ETH significantly in market value.
Ethereum, the second-largest cryptocurrency by market capitalization, has historically outperformed Bitcoin during bull market phases.
Typically, Ethereum has seen sharper price increases in bull runs due to its smaller market cap compared to Bitcoin, which allows for larger percentage gains.
Moreover, Ethereum’s fundamental role in decentralized finance (DeFi) and as a platform for non-fungible tokens (NFTs) often fuels optimistic speculation.
The chart demonstrates this trend, as the ratio tends to decrease when ETH gains on BTC during these optimistic periods.
The sentiment in the Ethereum trading community is heating up as many ponder the possibility of a new all-time high (ATH) in 2024.
According to CryptoQuant, a notable increase in open interest in Ethereum futures indicates growing confidence among traders.
Open Interest — the total number of outstanding futures contracts — has hit its highest mark since July 2022, corresponding with Ethereum’s price recovery from a significant support level of $1,500 to over $2,800 in recent times.
While these numbers signal bullish sentiment among futures traders, caution is advised. The rapid climb in Ethereum’s price, coupled with the surge in open interest, suggests a market prone to volatility.