This week, Bitcoin continues to move upwards though at a slow pace, currently trading above $9,600. The leading digital currency might have kickstarted the greens into action, but it is carried forward by Ethereum.
Bitcoin still needs to break $9,700, says trader Josh Rager adding, “Bitcoin will get its time to shine. ETH is leading now, so pay attention to Ethereum price.”
The second-largest cryptocurrency is yet again outperforming Bitcoin by increasing 22% this week compared to just 5.4% gains recorded by BTC.
In 2020 so far, while Bitcoin registered just about 31% gains, Ether has gone up by 117%.
— Alex (@classicmacro) July 24, 2020
The fact that this week, Bitcoin is “being dragged by ETH instead of SPY is a bullish development,” said analyst Ceteris Paribus.
As we reported, this opposite direction bitcoin is going towards the equities market has the one-month correlation of Bitcoin and S&P 500 falling by over 50% to 36.5% from an all-time of 78.8% set on July 8, 2020.
And this might be just the beginning as trader Jonny Moe said, “ETH making its play on $290 now. I've got to say, the way the ETH and BTC low timeframes are shaping up, I don't think it stops here.”
Interestingly, the market seems to think the same as ETH longs continue to hit new peaks. With yet another ATH in notional value, ETH longs on Bitfinex has hit $510 million, a jump of 65.5% since mid-May.
This isn't the first time Ether has led bitcoin; it's happened before. During the last bull market as well, Ether recorded an over 9,150% increase in its price in the year 2017 versus Bitcoin’s 1,318% jump.
This increased demand, as we reported, has pushed fees on the Ethereum Network to skyrocket, which now has miner revenue from fees surging to an all-time high.
“On the hourly chart, we're seeing that currently more than a third of the ETH miner revenue comes from fees rather than block subsidy – up from less than 5% in April,” noted Glassnode.
Ethereum network is working at its capacity with active address count, the number of unique addresses that either send or received ETH on a given day, also topping 500,000, which was last seen at the “backend of the 2017-18 ICO craze.”
Ethereum’s daily address count has doubled YTD, now outpacing Bitcoin by a good margin.