Ethereum Outperforms Bitcoin at New All-Time Highs
- By Bilal Hafeez and Dalvir Mandara
- 10 min read
With several coins hitting new all-time highs over the past week, crypto markets surged again. Ethereum (ETH) has been one of the top performers, rallying 16%. It is currently trading above the previous all-time daily close high of $4,414 (Chart 1) and has registered a new intra-day all-time high of $4,661. The total crypto market cap is now over $2.75tn, with over $520bn coming from ethereum alone. That puts it above some of the largest companies in the world (e.g., JPMorgan Chase, Alibaba, Johnson & Johnson, and Walmart).
Previously, we compared ethereum with bitcoin by seeing how much bitcoin we could buy with one ether. We observed that the cross was trending down, indicating ethereum was underperforming bitcoin. Recently, the cross has resumed an uptrend and is currently around 0.073 (Chart 2), approaching the highs of 0.078 from early September. Additionally, the gap between the market cap of bitcoin and ethereum was increasing until more recently, when it flipped to a downtrend (Chart 3). If the repricing of ethereum compared with bitcoin continues this uptrend and the market cap gap continues to narrow, the cross could likely return to the highs of 0.078. That would imply ethereum could approach $5,000 soon.
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