While there is a great mobility in the crypto market, the power struggle between Ethereum and Bitcoin fueled again. Following the last FOMC meeting, both beings recovered critical resistance levels. However, ETH/BTC parity is at the lowest level of five years. So, can Ethereum leave Bitcoin behind in the upcoming market recovery?
FED Decisions and Effect on Crypto Market
The US Federal Reserve (FED) pointed out that economic growth has slowed down by leaving interest rates constant in the range of 4.25% -4.5%. However, the market has risen with the speculation that the FED would make two interest rate cuts instead of one instead of one.
This expectation increased interest in risky assets. Bitcoin increased by 5 %to exceeded $ 85,000, while Ethereum recovered $ 2,000, with an increase of 6.4 %. In addition, the daily MACD indicator in ETH/BTC parity gave a bull signal and the volume of transaction reached the highest level of the last two weeks.
However, it remains unclear whether these movements will be permanent. The fact that policy decisions in the market become clear increases fluctuations and makes it uncertain whether ETH can support these levels.
Can Ethereum leave Bitcoin behind?
The main factors need to be strengthened in order for Ethereum to reclaim market leadership. ETH, $ 2,000 recovered, while major investors took action.
According to the latest chain data, Donald Trump’s World Liberty Financial Fund has purchased $ 10 million ETH. In addition, small investors started aggressive purchases at $ 2,059. This movement led to the withdrawal of 139,000 ETH, the largest stock market outlet of the last two weeks.
On the Bitcoin front, there was a net entrance to ETFs for four consecutive days. This shows that investors see the BTC as the opportunity to buy the opportunity to buy from bottom levels ..
In order for Ethereum to re -strengthen against Bitcoin, the ETH/BTC parity needs to break the 0.025 resistance level. In order to realize this, there must be a strong return of capital from BTC to ETH.
Critical levels in front of Ethereum
One of the critical turns for ETH will be whether the $ 2,500 resistance will be broken. Currently, the market is divided into two as Bitcoin’s long -term investor’s interest and whether Ethereum’s recovery process will be sustainable.
In order for Ethereum to make a strong rally, concrete purchase pressure is required beyond speculation. If ETH cannot maintain critical support, the risk of sagging below $ 2,000 will continue.
As a result, the future of Ethereum against Bitcoin will depend on how capital flows will be shaped in the next weeks.
