Crypto: Bitcoin Rally Leaves Ethereum Far Behind! Why?

The crypto markets experienced a bullish week, but Ethereum seems to be struggling to keep up with Bitcoin’s rapid pace. While the total market capitalization increased by 5.5%, ETH failed to fully capitalize on this bullish momentum.

Crypto: Ethereum Struggles to Keep Up with the Bullish Trend

ETH closed above $3,000 more than five days ago and has underperformed BTC by 22% since the beginning of 2024. This trend highlights the difficulty Ethereum is facing in maintaining its value against Bitcoin. Additionally, U.S. macroeconomic data seems to support the rally of some rare assets.

As a result, the markets reacted positively to the Consumer Price Index (CPI) data, which showed a 3.4% year-on-year increase in April, in line with market expectations. Unfortunately, this indicator was not enough to boost Ethereum as it currently is with the queen of crypto.

The Growing Uncertainty Among Investors

Some crypto analysts believe that the upcoming SEC decision on May 23, 2024, regarding VanEck’s request for a spot Ethereum ETF, is a key reason for Ethereum’s inability to break the $3,000 resistance level. The uncertainty surrounding this event is leading traders to delay their investment decisions until the outcome is more certain.

However, despite long-term optimism regarding Ethereum’s prospects, a rejection by the SEC could lead to a short-term market correction. Eric Balchunas, Senior ETF Analyst at Bloomberg, has expressed doubts about the approval of an Ethereum ETF in 2024, given the regulator’s cautious approach toward products that could be classified as securities, particularly those that include native staking services.

In conclusion, while the crypto markets have had a positive week, Ethereum still needs to prove its ability to keep up with the market leader, Bitcoin, in this bullish race.