🔹ETH/BTC ratio is surging strongly from the low of 0.02, reminding traders of the historic 300% rally in 2019. However, traders need to stay alert rather than chasing pink dreams
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🔸Ethereum has just set a new record of 58,000 TPS, alongside the rise of the RWA sector accounting for 11% of TVL. In reality, ETH price has reached $3,400, far outperforming BTC's 15% gain during the same period. However, BTC's current market cap of $2.5 trillion is already massive. If ETH.D rises too quickly, the pressure to take profits from major players shifting back to BTC as a safe haven will be high if macro conditions turn negative
🔸Unlike 2019, current capital flow is mainly from ETF funds. In fact, new legal regulations are favoring BTC as a reserve asset. The biggest risk is if other Layer 1s compete on transaction fees and regulatory constraints tighten on DeFi, Ethereum may struggle to sustain its growth based on fundamentals
🔹ETH is making a strong technical recovery, and a 75% rebound ratio indicates a good short-term opportunity, but overcoming BTC's huge shadow in this cycle remains a risky challenge
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This article is not investment advice. The market is always volatile, carefully consider and invest responsibly