Ethereum Lagging Behind Bitcoin Could Demonstrate Altcoin Weakness

Tuesday 27 October 2020, 11:04 AM AEST - 1 month ago

Ethereum spent the summer months easily dominating Bitcoin on the back of the DeFi bandwagon. Only recently when Bitcoin broke back above $12,000 with a more than $1,000 intraday candle to $13,000, has the trend changed.

Crypto traders waiting for Ethereum to catch up like the last time around, could be left with heavy bags, according to one crypto trader who says that the altcoin is simply exhibiting weakness relative to BTC.

DeFi Summer Of Love Ends In Bad Breakup With Crypto Dominance

2020 has been primarily about Ethereum and the decentralized finance movement, and all associated crypto tokens. These coins, built on the back of Ethereum as ERC20 tokens, exploded in price the more total value locked in DeFi applications grew.

Ethereum became the top performing asset had a stimulus check been invested into crypto back in April, resulting in more than two times the return as Bitcoin.

The trend recently reversed, however, when the domino effect of business buying Bitcoin was capped off by payments giant PayPal announcing support for cryptocurrenices.

And although Ethereum was part of the list of just four crypto assets to make it onto PayPal, Bitcoin and Litecoin left ETH behind.

Ethereum Isnt Lagging, It Is Weak Compared To Bitcoin: Trend Trader

Ethereum beat Bitcoin to setting a new 2020 high, and has set a higher high over its 2019 peak. Bitcoin, however, has yet to breach above last years peak, but it did manage to finally set another 2020 high.

Since Bitcoin set a higher high, Ethereum has lagged behind, failing to follow to another new 2020 peak.

The altcoin might not simply be lagging, however, and may just be exhibiting weakness according to crypto trader Cold Blooded Shiller.

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