Ethereum spent the summer months slightly dominating Bitcoin on the back of the DeFi train. Just recently, when Bitcoin broke back above $ 12,000 to $ 13,000 with an intraday candle of more than $ 1,000, the trend changed.
Crypto traders waiting for Ethereum to catch up like last time could be left with heavy bags, according to one crypto trader who says the altcoin simply has “weakness” compared to BTC.
DeFi Summer of Love ends in a bad breakup with crypto dominance
2020 was mostly about Ethereum and the decentralized financial movement and all of the crypto tokens associated with it. These coins, built as ERC20 tokens on the back of Ethereum, exploded in price as the overall value of DeFi applications grew.
Ethereum became the top performing asset after investing a stimulus check in crypto back in April, which generated more than double the return of Bitcoin.
Related reading | Asset Manager Who Predicted Ethereum Will Outperform Bitcoin: Trend Is “Done”
However, the trend recently reversed when the domino effect of businesses buying Bitcoin was limited by payment giant PayPal, which announced support for cryptocurrencies.
And although Ethereum was on the list of only four crypto assets to make it on PayPal, Bitcoin and Litecoin left ETH behind.
Ethereum doesn’t lag behind, it’s weak compared to Bitcoin: Trend Trader
Ethereum has hit Bitcoin to a new high for 2020 and made a higher high above its 2019 high. Bitcoin has not yet topped last year’s high, however, but it has managed to finally hit another 2020 high.
With Bitcoin setting a higher high, Ethereum has lagged and didn’t hit another new high in 2020.
However, the altcoin could not simply lag behind; according to the crypto trader Cold Blooded Shiller, it could only show a “weakness”.
ETH versus BTC comparison chart with “weakness” | Source: ETHUSD versus BTCUSD on TradingView.com
Ethereum’s weakness versus Bitcoin can be seen in a merchant side-by-side comparison comparing merchants waiting for ETH to catch up on BTC with those who got burned while waiting for Tezos Chainlink to get one new all-time high follows.
Related reading | Eerie bitcoin fractal suggests the price of Ethereum is about to skyrocket higher
The new high never arrived for XTZ while Chainlink took off to the moon. Now it’s Bitcoin’s turn, and after such a strong summer for Ethereum and the air out of the DeFi bubble, the weakness against BTC is likely to continue.
Featured image from Deposit Photos, chart from TradingView.com