Ethereum Rally Outshines Bitcoin, Dogecoin Gains: Analyst Sees ETH-BTC Flipping On The Horizon – Bitcoin (BTC/USD), Ethereum (ETH/USD), Dogecoin (DOGE/USD)
ether spiked and Bitcoin turned green Tuesday night as the global cryptocurrency market cap rose 4.6% to $972.5 billion as of 9:23 p.m. EDT.
| coin | 24 hours | 7 days | Price |
|---|---|---|---|
| Bitcoin BTC/USD | 4.5% | 4.55% | $20,153.09 |
| ether ETH/USD | 9.8% | 12.8% | $1,469.73 |
| Dogecoins DOGE/USD | 7% | 6.7% | $0.06 |
| cryptocurrency | 24-hour % change (+/-) | Price |
|---|---|---|
| clay coin (TON) | +29.1% | $1.90 |
| Lido DAO (I DO) | 12.2% | $1.7 |
| Cardano (ADA) | +10.2% | $0.40 |
See also: Best cryptocurrencies under 1 cent
Why it matters: Ethereum is up 12.5% so far this week. The second largest coin’s weekly gains overshadowed Bitcoin’s 4.35% appreciation over the timeframe.
The two largest coins rallied on Tuesday despite the Google parent alphabet missing earnings estimates and Microsoft insightful preceding weak leadership. The tech-heavy Nasdaq closed up 2.25% on the day.
Nasdaq futures are down 2.2%, while S&P 500 futures are trading 1.1% lower at the time of writing.
Michael van de Poppe said that Ethereum “cracked a lot of levels” with its massive movement. “Great flip from $1,320 inducing a continuation towards $1,500. [Ethereum] will tilt [Bitcoin] this cycle, but now is not the time to hunt. Looking for some healthy corrections to take the next step to $1,600,” the cryptocurrency trader said on Twitter.
#Ethereum has broken a lot of levels with this massive move.
Great flip from $1,320 starting a continuation towards $1,500. #Ethereum will flip #Bitcoin this cycle, but now is not the time to chase.
Look for some healthy corrections to take the next step to $1,600. pic.twitter.com/z3d6O5nYY8
— Michaël van de Poppe (@CryptoMichNL) October 25, 2022
Meanwhile, an Ethereum whale wallet that hasn’t been active for more than 6 years has moved $22.2 million worth of ETH to an empty wallet, it noted Holy.
“[Ethereum’s] The price is up 8.1% since this transaction, briefly jumping above $1,500 for the first time since the #merge 6 weeks ago,” the market research platform tweeted.
An #Ethereum whale wallet that hasn’t been active for over 6 years woke up today and moved $22.2 million worth of $ETH to an empty wallet. The price of $ETH is +8.1% since this transaction, briefly jumping above $1,500 for the first time since the #merger 6 weeks ago. https://t.co/bLwZZwhJSa pic.twitter.com/L78mAfJHq2
— Santiment (@santimentfeed) October 25, 2022
“Both Bitcoin and Ethereum are gaining momentum as Wall Street throws up some strong sessions. The economy is showing more signs of slowing down and that helps investors feel confident that the Fed will be in a better position to ease its pace of tightening after next week’s FOMC meeting,” he said Edward Moyaa senior market analyst at OANDA.
Still, Moya pointed to a “handful of big risk events” coming up for the week, such as tech earnings, key central bank decisions and Q3 GDP numbers.
“On the upside, bitcoin should face resistance around $20,500 while $18,500 offers strong support,” the analyst said in a note seen by Benzinga.
glass node pointed out both bearish and bullish cases for Bitcoin in a blog post. The on-chain analytics firm said that the bear case is a “historically low on-chain usage profile and an impending miner deleveraging event.”
“With a $1.5 billion miner overhang, which is just one source of distressed BTC, and multi-year lows in both trading and transfer volume, a major distribution could be hitting thin order books,” Glassnode said.
Bitcoin: Long-Term Inventory Estimate for Holders – Courtesy of Glassnode
On the other hand, Hodling is at an all-time high. Glassnode said, “Despite being relatively small, the conviction of bitcoin’s die-hard believers is unshakable, and their balance continues to grow, through thick and thin.”
Since the end of March 2022, bitcoin mining difficulty has increased by 29% overall, while bitcoin price has fallen by 57% over the same period,” said Delphi Digital.
“This suggests that miners may be seeing a significant drop in profitability from just six months ago. However, Bitcoin’s hash rate was unaware of these numbers, marking an all-time high of 262 EH/s,” the independent analytics firm wrote in a note.
The price of BTC is once again approaching the estimated production cost of electricity. “Currently, the production cost is $16.9K while the BTC price is $19.8K, a 17% difference,” it said Delphi Digital.
BTC Mining Difficulty, BTC Price, and Electric Production Cost – Courtesy of Delphi Digital
Delphi Digital noted that the cost of producing electricity has “consistently marked a price floor for BTC” over the past five years.
“The price has only reached the cost of production three times in the history of the network: in December 2018, March 2020 and June 2022. After each of these events, the price has recovered.”
Read Next: Bitcoin Surpasses $20,000, Ending 3-Week Plunge – Will the Crypto Target $25,000 Next?
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