Ethereum (
$3,893.93 ) is outperforming Bitcoin (
$98,145.00 ) ahead of The Merge in September, with the second largest cryptocurrency by market cap rising 61% against Bitcoin ( $98,145.00 ) since June.
The below chart shows the price of Ethereum ( $3,893.93 ) against Bitcoin ( $98,145.00 ) since 2018. ETH has finally passed the 0.077 BTC level not seen since January 2022; now just 12% off a 4-year high.
The Flippening
The bullish sentiment may reignite the hopes of a Flippening whereby Ethereum ( $3,893.93 ) surpasses Bitcoin ( $98,145.00 ) in market cap.
For this to happen, Ethereum ( $3,893.93 ) would need to increase by an additional 100% to achieve roughly $3,750. This price target is still 23% below its historical all-time high of $4,800 that it hit in November 2021.
Source: TradingView
Ethereum ( $3,893.93 ) reached a peak of 0.15 BTC in 2017 and has struggled to regain 0.1 BTC since February 2018. News of the upcoming Merge finally becoming more than a pipedream seems to have ignited the market to favor the smart contract-enabled blockchain over Bitcoin ( $98,145.00 ) , at least in the short term.
The following chart plots the price of Ethereum ( $3,893.93 ) against both the US Dollar and Bitcoin ( $98,145.00 ) . It is clear that Ethereum ( $3,893.93 ) is currently rising at a greater pace against Bitcoin ( $98,145.00 ) than it is against the dollar, indicating a strong position in the broader crypto market.
Source: TradingView
Market Dominance
The overall market dominance of Ethereum ( $3,893.93 ) is also rising compared to Bitcoin ( $98,145.00 ) . The chart below from Glassnode showcases the strength of Ethereum ( $3,893.93 ) ’s overall market dominance, which is currently at its highest since December 2021.
Source: Glassnode
Ethereum ( $3,893.93 ) is also dominating on other metrics such as the number of active addresses and number of transactions. Both metrics began soaring around July, with Ethereum ( $3,893.93 ) now recording almost 100k more active addresses than its rival Bitcoin ( $98,145.00 ) .
Source: GlassnodeSource: Glassnode
Hopium engaged
However, a key indicator may suggest that the Ethereum ( $3,893.93 ) resurgence could be short-lived. The amount of Ethereum ( $3,893.93 ) held on exchanges has risen over the past several months, while Bitcoin ( $98,145.00 ) levels have declined significantly. This change may indicate that the rise in Ethereum ( $3,893.93 ) dominance against Bitcoin ( $98,145.00 ) is being driven by speculation on The Merge instead of investors looking for a long-term hold.
Source: Glassnode
Another chart shows the strike prices of Ethereum ( $3,893.93 ) options with out-of-the-money calls receiving massive open interest. Strike prices with high volume go as high as $10,000 for ETH, which would increase 455% from the current price. These calls are likely being used as a part of a more complex trading strategy whereby the trader also shorts or buys puts at a lower strike price to minimize risk.
Source: Glassnode
The reality is that Ethereum ( $3,893.93 ) is outperforming Bitcoin ( $98,145.00 ) at the moment. On-chain data such as active addresses indicates that this plays out with users interacting with the network rather than simply HODLing.
The increasing level of Ethereum ( $3,893.93 ) on exchanges does temper this sentiment slightly, but an increase in the volume of coins held on exchanges is by no means a perfect indicator of bearish sentiment.
There is just over one month left before we all find out whether The Merge is really the catalyst for Ethereum ( $3,893.93 ) to finally flip Bitcoin ( $98,145.00 ) .
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