Ethereum is Outperforming Bitcoin, but Is there a Catch?

Paigambar Mohan Raj
Source: CNBC

The Ethereum (ETH) merge has taken the spotlight in the crypto industry. The much-anticipated upgrade has pushed the token’s performance along with.

With the merge just days away, Ethereum has surged as compared to the original crypto, Bitcoin (BTC). According to the data from TradingView, the ETH:BTC ratio has reached an all-time high for 2022, reaching 0.084. The ratio has spiked by nearly 58%, from what it was in the middle of July. The ratio basically indicates the price of 1 BTC, in terms of ETH. A ratio of 0.084 roughly translates to 1 BTC costing about 12 ETH.

The number one factor pushing ETH against BTC is the anticipation surrounding the Merge. The project will finally transition to a Proof-of-Stake (PoS) method of consensus. The upgrade was only theoretical up until very recently. According to Vitalik Buterin, one of the co-founders of Ethereum, the merge is set to take place between the 13th-15th of September.

Additionally, the project successfully completed the Bellatrix upgrade, which is the last of such before the merge.

Ethereum overtaking Bitcoin is a scenario that has been widely discussed in the crypto community. Many have dubbed this possible event as “the flippening.” However for “the flippening” to occur, the ETH:BTC ratio will need to hit at least 0.159, based on the current circulating supply.

Is there a catch to Ethereum’s performance?

According to popular crypto YouTuber, Jason Pizzino, the price of Ethereum may stall in the short to medium term after the merge. Pizzino claims he is worried that once the merger occurs, ETH will create a lower high, setting the stage for unpleasant price movement for Ethereum investors.

The YouTuber stated,

“Looking at the US dollar on Ethereum, we just closed back above the 50 [fibonacci] level. So basically the facts on what we’re seeing here in terms of price – above the 50 the resistance level is still at about $1,700 based on the previous support levels of the bull market cycle.”

According to Pizzino, bulls would likely struggle if Ethereum does encounter resistance near $1,700 and retraces.

At press time, Ethereum (ETH) was trading at $1,681.27, up by 6.9% in the last 24 hours. Moreover, the token is up by 8.1% in the last seven days.