Ethereum To Outperform Bitcoin, Here’s The Indicator That Says So

Ethereum is able to move higher faster and quickly regain its previous highs. Market cap second, Ethereum broke through the critical resistance of $3,000 recently and outperformed Bitcoin in the past week.

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At press time Ethereum is trading at $3,100. It has a profit of 3.4% and 12.2% in the past 24-hours, and a loss of 2.2% over the past week. Bitcoin trades at $43,000 and makes a 7% profit within a week.

Ethereum ETH ETHUSD
ETH has bullish momentum in the daily chart. Source: Tradingview ETHUSD

A pseudonym analystThis track could be continued by Ethereum. The analyst has been closely following BTC and ETH’s price performance using the On-Balance-Volume (OBV), a metric used to measure price momentum.

While the analyst believes both cryptocurrencies “look good”, he shared Ethereum’s OBV chart to support a bullish thesis for this asset and its potential to run higher than BTC. The analyst said: “That’s why I’m holding ETH and selling a LITTLE of BTC”.

As ETH’s OBV shows in the chart below, the cryptocurrency broke a downside trend which started in November 2021. At that time, ETH’s OBV stood at around 19 million and descended into a 14 million low last February.

Ethereum ETH ETHUSD
Source: IncomeSharks via Twitter

Ethereum’s break of the bearish trendline suggested that Ethereum could be able to reclaim more OBV. This would allow it to possibly make a run for $4,000. ETH currently has 17 million OBV.

Bitcoin, on the other side, is still not above its OBV trendline. It could experience some price movement that is similar to a crab until bulls or bears make their case. Analysts expect BTC to reverse some of its gains, but only at the current level and within a relatively short time frame.

Ethereum ETH ETHUSD
Source: IncomeSharks on Twitter

Ethereum Rising Through the Merge

Bitcoin and Ethereum could profit even more in April when cryptocurrency has traditionally experienced gains. Analyst said that:

Bitcoin seems to like April 1st. The date has been used to mark the bottoms of local markets and it’s also served as a bottom several times before the bull run. Minus last year, was a local top, it’s been a very pivotal date. Seeing we’ve already corrected I’m leaning towards an exciting April 1st.

ETH’s price current rally could be supported by the imminent launch of “The Merge”. The event will combine Ethereum’s execution layer with its consensus layer supported by a Proof-of-Stake (PoS) mechanism.

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According to data from IntoTheBlock this indicates that interest has increased in this event. This metric seems to correlate with the price for ETH, as shown below.

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