Bitcoin-denominated Ethereum hit a 2022 high of 0.084 BTC just before the merger, and the recent rally has investors wondering if Ethereum can recapture its pre-merger highs.
Ethereum posted a strong gain against Bitcoin ahead of the Sept. 15 merge. However, the second-largest cryptocurrency by market capitalization failed to reach its all-time high in 2017.
Ethereum reached 0.12 BTC around June 2017 and 0.1 BTC in 2018. of crypto slate Analysis of Glassnode data.
Ethereum fell to 0.018 BTC during the 2019 bear market. However, Ethereum in this cycle performed much better in November 2021, when he retested the 0.075BTC resistance, following a merge in September.
Following a retracement in early October, Ethereum is once again picking up pace with Bitcoin, now near the 0.075 BTC mark.
There are several possible catalysts for Ethereum’s resurgence over Bitcoin. Despite limited innovation in the core technology behind Bitcoin, Ethereum has witnessed a major overhaul of its network.
Ethereum experienced its first deflationary month following the merge as supply fell for the first time in its history. On its current trajectory, total Ethereum supply will decrease by 0.07% over the next 365 days. A decline in aggregate supply is often seen as a bullish indicator of future price action.
Several factors could alter Ethereum’s projected supply growth, including the amount of ETH locked into staking and the amount of ETH burned from network transactions. Data on the supply and burning of Ethereum can be found at ultrasound.money.
A further bullish outlook for Ethereum during Q4 is further supported by a review of options open interest. Derivatives exchange Deribit, which expires on December 30, has an overwhelming number of calls for $3,000.