Ethereum (ETH) Price Prediction: Can ETH Outperform Bitcoin (BTC)?

Ethereum [ETH] has so far been unable to keep up the pace with Bitcoin’s [BTC] consistent upward momentum. While Bitcoin has registered new all-time

Bitcoin [BTC] has led the cryptocurrency market throughout 2023, reaching new all-time highs and outperforming most other digital assets.

However, some analysts believe that Ethereum [ETH] is preparing for a massive breakout that could see it outperforming BTC in the coming months.

One such analyst, known as Ali, recently highlighted several indicators that, according to him, are setting the stage for ETH to “outperform BTC soon.”

Among these indicators is the “alt season indicator,” which has historically signaled periods where altcoins, led by Ethereum, outpace Bitcoin.

In the current market cycle, this phase has yet to occur, presenting a potential opportunity for ETH to lead the market.

Furthermore, Ali also pointed to the MVRV (Market Value to Realized Value) metric as a key indicator for Ethereum’s future performance.

The MVRV metric essentially measures the ratio between the market value and realized value of an asset, providing insight into whether an asset is overvalued or undervalued.

According to Ali, when Ethereum’s MVRV Momentum crosses its 180-day moving average (MA), it has historically signaled a period of outperformance for the cryptocurrency.

While ETH's price recently rallied from $2400 to $2800, this cross has yet to occur, suggesting further upside potential.

Highlighting another crucial observation, the analyst noted that investors have shifted from distributing to accumulating ETH, with over $147 million in ETH entering spot ETFs.

Additionally, Ethereum whales have been spotted purchasing over $1.40 billion in ETH, further bolstering Ali’s bullish outlook for the cryptocurrency’s price action.

According to Ali’s analysis, potential price levels for Ethereum include testing resistance at $4000 and $6000, respectively.

In a bullish scenario, if ETH mirrors the S&P 500’s price action, a target as high as $10,000 is also on the cards.

However, examining key metrics can offer further insights into whether Ethereum could realistically outperform Bitcoin.

One such metric is the Estimated Leverage Ratio, which reflects the level of leverage used by traders in the derivatives market.

A high leverage ratio often indicates increased risk and potential volatility, while a decline may suggest reduced speculation.

According to data from CryptoQuant, Ethereum’s estimated leverage ratio dropped to 0.40 on the 19th of November, after peaking at 0.430 earlier in the month.

This decline may indicate reduced speculative activity, potentially paving the way for more stable growth.

Moreover, data from Coinglass revealed that Ethereum’s Open Interest has declined by 0.09%, bringing its current valuation to $17.88 billion.

Furthermore, the Open Interest volume for ETH has decreased by 30%, now valued at $31.10 billion.

These trends could indicate a period of consolidation and reduced market activity for ETH, offering both challenges and opportunities for future growth.