ETH/USD is breaking out, reaching levels not seen on the chart since mid-2022. Traders are currently intrigued by a bullish divergence from the Moving Average Convergence Divergence (MACD) indicator on the weekly time frame relative to Bitcoin. Ethereum, the largest altcoin, has outperformed Bitcoin this week, even as Bitcoin celebrated the launch of a U.S. spot exchange-traded fund (ETF), hitting its highest levels since the ETF's launch in December 2021.
The bullish momentum is reportedly fueled by rumors of Ethereum's U.S. ETF debut later this year. While BlackRock, an asset manager, launched a Bitcoin ETF recently, its CEO Larry Fink expressed the value he sees in Ethereum. There is growing speculation about Ethereum's potential to surpass Bitcoin, with attention shifting away from BTC/USD ahead of the collective subsidy halving in April.
Scott Melker, a trader, analyst, and podcast host known as "The King of Streets," responded to Larry Fink's comments about Ethereum, suggesting potential positive developments for the cryptocurrency. Michaël van de Poppe, the founder and CEO of trading firm MNTrading, predicts that Ethereum will continue to rise relative to Bitcoin's share of the cryptocurrency's combined market capitalization.
Van de Poppe believes that Bitcoin's dominance may have peaked ahead of the halving, and as Ethereum gains momentum, this trend is likely to continue. This could signify the top of the dominant cycle as the altcoin bull market begins. Part of the ETF narrative envisions a significant squeeze on Bitcoin supply as institutions seek to invest in BTC for the long term.
