Market For ETH/BTC Went Off A Cliff In 2019, Could Reverse Now

The biggest altcoin of all, Ethereum, did not see a positive 2019. The second largest cryptocurrency by market cap registered a negative performance in 2019 which was contrasted by Bitcoin and its yearly gains of over 90%. In the crypto news today, we can see that the market for ETH/BTC is improving and while it fell off a cliff in 2019 with the price of one ETH as low as 0.016, the situation is now changing.

Over the past few weeks, Ethereum has shot higher against the US dollar and against BTC. It was buoyed by the sentiment that there is an impending altseason and the simple fact that the asset was oversold in 2019.

A recent analysis by a prominent market commentator named Loma (LomahCrypto) shows that the market for ETH/BTC could be on the verge of going near-vertical. The trader posted the below chart to back his point and showed that the trading pair has begun consolidating above the key horizontal support around 0.026 Bitcoin.

01 – $ETH #ETHEREUM pic.twitter.com/7DoTKEtgU2

— Loma (@LomahCrypto) February 21, 2020

In fact, the pair remained above the key infection point for around 10 days now, boding well for the bullish narrative that is building. The consolidation, as Loma depicted, is a likely sign that ETH will rally 15% against Bitcoin (BTC) in a near vertical fashion in the coming few weeks. He believes that the ETH news will show increases and that the pair will move vertically.

But there are more fundamental reasons to believe that the market for ETH/BTC will improve and outperform the tried and true market leader from this point. The proximity of the blockchain’s 2.0 (Serenity) upgrade will certainly change how Ethereum works in a way that many say will be for the better.

Ethereum 2.0 will see the amount of ETH issued per block to be cut dramatically. This means that the relatively high inflation rate of the asset will be dropped dramatically. The decreased selling pressure from miners along with the adoption enabled by the technical improvements in Serenity will help and push Ethereum higher in the long run.

And while there is the growth of DeFi and the Ethereum 2.0 project that are well for bulls, there are concerns regarding on-chain finance which may act as a bearish case in the market for ETH/BTC moving forward.