ETH to Bitcoin rate suggests rally

By Gaurav S. Iyer, IFC Released : 20th February 2018

Ethereum News Update

In constructive phases of the cryptocurrency market cycle, investors flock to development platforms like Ethereum.

The result is a surge in ETH on Bitcoin prices.

However, the opposite occurs during a market crash. The prices for ETH to Bitcoin are falling. Why? The simple answer is that many investors view Bitcoin as the digital equivalent of gold, which causes them to consolidate into BTC during times of panic.

In other words: bull markets prefer Ethereum, bear markets prefer Bitcoin.

We can track this relationship using the ETH / BTC ratio. It rose in the fourth quarter of 2017 – which was a massive bull market – in sync with Ethereum to USD rates, suggesting that as Ethereum grew in value, so did its status vis-à-vis Bitcoin.

eth btc price table for 20 feb

An ETH token was even worth more than a tenth of a bitcoin. This may sound inconspicuous to beginners, but experienced traders see it as an important milestone. It signals a shift in the balance of power.

Most of Ethereum’s advances, however, were undone by ETH’s price drop in January.

The sudden shift to a bear market caused Ethereum prices to fall. We have seen a moderate rebound since then, but investors remain cautious, which means Bitcoin’s rebound has been bigger than Ethereum’s.

This trend has led to a strong divergence between the price of Ethereum to Bitcoin and the price of Ethereum to USD. The ETH / BTC rate has now dropped to 0.8350760.

Still, I don’t expect this caution to continue.

Cryptocurrency traders have brief reminders. Sooner or later, when the bull market is in full swing, investors could turn their funds down the list of cryptocurrencies, starting with Ethereum.

Take analyst

It doesn’t take a genius to see this opportunity. The ETH / BTC ratio does not match the rate of Ethereum to USD. I expect a strong inflection from this point onwards that would lead ETH prices to our Ethereum price forecast of $ 1,500 by the end of the second quarter.

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