Ethereum Price To Outperform Bitcoin in 2024: Here's Why

One analyst thinks Ethereum’s price is primed for a strong rally and will outperform Bitcoin in the days ahead of the spot ETH ETF launch.

An analyst believes that Ethereum (CRYPTO: ETH) will likely outperform Bitcoin (CRYPTO: BTC) in the days leading up to the launch of a spot ETH ETF.

Last year, when rumors began circulating that the U.S. Securities and Exchange Commission would approve a spot Bitcoin ETF after a 10-year wait, BTC price action started to show signs of an expansion, which became clear from mid-October.

However, no one knew at the time what Solana bulls were preparing for.

Solana (CRYPTO: SOL) was ultimately reaping higher, reversing nearly all losses of 2022 because of a fundamental spark: FTX victims stood to finally recoup some of their losses, and the recovery was proceeding as intended.

Now, all eyes are on Ethereum. This time, the optimism is not being driven by technical candlestick formations or Bitcoin, but another fundamental catalyst.

Ethereum Price To Outperform Bitcoin in 2024: Here’s Why

It is also why Andrew Kang, an analyst and founder, is bullish on ETH.

In a post on X, Kang said he has been "relatively neutral on ETHBTC since the merge, when the network shifted from proof-of-work to proof-of-stake. But my eyes are on the prize."

While I have been apathetic towards ETHBTC since the merge, I believe that market structure is conducive for sustained outperformance into ETF launch

BTC has strong passive flows, but there is no rush for large allocations and so likely grinds up slowly.

ETH on the other hand…

— Andrew Kang (@Rewkang) June 6, 2024

He is strongly convinced that the ETH market structure is primed for gains leading up to the SEC green-lighting the launch of spot Ethereum ETFs.

There are several reasons supportive of this outlook.

Kang notes that BTC will likely underperform Ethereum because, although it has received strong inflows via spot ETFs, there is a problem in the absence of large allocations. For this reason, the Bitcoin uptrend will continue, but the leg up will be slow.

Ethereum, on the other hand, enjoys a confluence of positive factors.

All eyes are on the launch of spot Ethereum ETFs, a major catalyst that could attract new investors and drive prices higher.

The market could receive crucial information regarding the launch date or the S-1 filing (a registration document) for spot ETH ETFs any day now.

The regulator has already approved all 194-b filings, and the S-1 filing awaits. Usually, registration documents take months to approve.

Even so, considering how accelerated the process was ahead of the 194-b filing approval, some speculate that the SEC could greenlight them this month.

DISCOVER: How to Buy Ethereum in June 2024 – Beginners Guide

Will ETH Bulls Fill The Technical Gap Between $4,000 and All-Time Highs?

Currently, the ETHUSDT chart shows that the coin is moving horizontally with clear caps at $3,700 and $3,900.

If bulls are to take over, there must be a decisive close above $3,900 and preferably $4,100.

Beyond $4,100, a clear technical gap exists to $4,900, the all-time highs printed in 2021.

The odds of traders pumping prices higher (and faster) like they did with Bitcoin could fuel momentum.

With this possibility, Kang believes that skilled traders can capitalize on the momentum by structuring profitable trades based on the ETH/BTC ratio and the ETH/USD price movement.

EXPLORE: Crypto Developments In Asia: UAE, Singapore and Bangkok In Focus