In recent days in the crypto markets, an interesting dynamic is occurring regarding the price of Ethereum in Bitcoin and in USD.
The thing is curious especially because by the end of the month, or at the latest by the first week of July, the final listing of spot ETH ETFs in the USA is expected, but despite this at the moment Ethereum appears clearly subordinate to Bitcoin.
Summary
The price of Ethereum and Bitcoin in USD
Regarding the price trend in USD in recent days, there is not much to say about either Ethereum or Bitcoin.
After the sudden movement on Friday, when the price of BTC dropped almost abruptly from around $72,000 to around $69,000, over the weekend it did nothing but move sideways just above $69,000.
Among other things, the current level is perfectly in line with that of last Monday, so Friday did nothing but burn the gains accumulated during the week.
Indeed, at the beginning of June it was below $68,000, so the current level should still be considered very good, being in fact only 6% lower than the historical maximum.
A similar argument can also be made for Ethereum.
The current price is below $3,700, and it is in line with that of the last decade of May.
Curiously, however, it is still at -25% from the absolute highs of 2021, but last week it had not risen much.
After the boom of May 20, when the news of the possible imminent approval of the applications for the issuance of a spot ETH ETF in the USA came out, it rose only until the end of the month, then started June above $3,700 and in fact has been lateralizing until now.
Friday had reached just above $3,800 before the drop that brought it back below $3,700.
During the weekend, it did not move from this last level.
The dynamics of this morning
This morning, however, there was some small movement, although not significant.
The price of Bitcoin has moved from $69,700 to $69,200, as if it wanted to start a small bear trend, but once it reached this last level, it recorded a rebound that seems to have averted further declines, at least for now.
The price of Ethereum went from $3,715 to $3,655, but only to bounce back and return above $3,670.
These are dynamics that only serve to liven up the markets a bit, but they are not decisive in any way, not even in the short term.
However, it cannot be ruled out that tomorrow or the day after tomorrow this period of lateralization may end, even if it is not yet clear in which direction it might go.
The Ethereum/Bitcoin ratio and the relationship with the price in USD
The only truly interesting dynamic is that of the relationship between Ethereum and Bitcoin.
First of all, you can analyze the price trend of ETH expressed in BTC.
At the beginning of June, one ETH was worth about 56 thousandths of BTC. However, already on June 2, this price started to drop.
In particular, on June 3rd it had dropped to 54 and on June 5th to 53.
After Friday’s drop, it ended up falling below 53 thousandths of BTC, so now it is still below.
It is worth noting that at the end of May it had also risen above 57 thousandths, so this is a decline that has been going on for more than two weeks now.
Considering instead the ratio between the market capitalization of BTC and that of ETH, today it has risen to 3.1, after being below 2.9 at the end of May.
However, these are not very high values, given that before the news of the probable approval of spot ETH ETFs it was almost 3.6.
What matters most at this moment is that from Friday’s drop this ratio has risen, albeit slightly, indicating that Bitcoin is holding up better than Ethereum in these days when financial markets seem a bit worried about the Fed’s restrictive monetary policy.
The dominance of Bitcoin
The picture for altcoins becomes even bleaker if we analyze the dominance of Bitcoin.
At the end of May, according to Trading View data, it had dropped to 53.7%, and since then it has started an almost constant rise.
June started above 54%, and last week it had already risen above 54.7%.
The most interesting thing, however, was the reaction to Friday’s drop, with Bitcoin’s dominance suddenly jumping from 54.6% to 55.5%, although it then fell to 54.9% over the weekend.
This morning, however, it rose again, returning to 55.5%, before slightly correcting to 55.4%.
If we take as a reference the 51.9% at the beginning of the year, it is evident how in this 2024 it is precisely Bitcoin that dominates the crypto markets, although there are occasionally some small exceptions.
Among other things, the maximum peak of the dominance of the year was 56.3%, which is not much higher than the current levels. This gives a good idea of the fact that altcoins as a whole are not going through a good moment at all. Just think that the current levels are similar to those of the second half of April 2021, that is, in the midst of a great bull run.
In summary, despite the fact that in theory the attention at this moment should be focused on Ethereum, it is still Bitcoin that dominates the crypto markets, with the altcoins that for now are limited to suffering while waiting for better times,
