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Cryptocurrency markets have experienced a bullish week, but Ethereum appears to be struggling to keep up with Bitcoin's rapid pace. Although the total market cap increased by 5.5%, ETH was unable to fully capitalize on this bullish momentum.
Cryptocurrency: Ethereum struggles to catch up with bullish trend
ETH closed above $3,000 over five days ago and has underperformed BTC by 22% since early 2024. This trend highlights the difficulties Ethereum faces in maintaining its value against Bitcoin. Additionally, US macroeconomic data appears to support the rally in some rare assets.
As a result, the market liked the April consumer price index (CPI) data, which was in line with market expectations and rose 3.4% year-on-year. Unfortunately, this indicator was not enough to boost the current queen of cryptocurrencies, Ethereum.
Uncertainty rises among investors
Some crypto analysts believe that the SEC’s decision scheduled for May 23, 2024 on Van Eck’s Spot Ethereum ETF request is the main reason why Ethereum cannot break out of the $3,000 resistance level. ing. The uncertainty surrounding this event has caused traders to postpone investment decisions until the outcome is more certain.
However, despite long-term optimism about Ethereum's prospects, a rejection by the SEC could lead to a short-term market correction. Eric Balciunas, senior ETF analyst at Bloomberg, said he expects an Ethereum ETF to be approved in 2024 given regulators' cautious stance on products that could be classified as securities, especially those that include native staking services. expressed doubts.
In conclusion, the cryptocurrency market has had a strong week, but Ethereum still needs to prove its ability to catch up with market leader Bitcoin in this bullish race.
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Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
