Ethereum is outperforming Bitcoin forward of The Merge in September, with the second largest cryptocurrency by market cap rising 61% against Bitcoin since June.

The under chart exhibits the price of Ethereum against Bitcoin since 2018. ETH has lastly handed the 0.077 BTC stage not seen since January 2022; now simply 12% off a 4-year excessive.

The Flippening

The bullish sentiment might reignite the hopes of a Flippening whereby Ethereum surpasses Bitcoin in market cap.

For this to occur, Ethereum would wish to extend by a further 100% to realize roughly $3,750. This price target remains to be 23% under its historic all-time excessive of $4,800 that it hit in November 2021.

eth btc
Source: TradingView

Ethereum reached a peak of 0.15 BTC in 2017 and has struggled to regain 0.1 BTC since February 2018. News of the upcoming Merge lastly turning into greater than a pipedream appears to have ignited the market to favor the good contract-enabled blockchain over Bitcoin, at least in the brief time period.

The following chart plots the price of Ethereum against each the US Dollar and Bitcoin. It is obvious that Ethereum is presently rising at a better tempo against Bitcoin than it’s against the greenback, indicating a robust place in the broader crypto market.

Source: TradingView

Market Dominance

The general market dominance of Ethereum can be rising in comparison with Bitcoin. The chart under from Glassnode showcases the power of Ethereum’s general market dominance, which is presently at its highest since December 2021.

eth btc dominance
Source: Glassnode

Ethereum can be dominating on different metrics corresponding to the variety of energetic addresses and variety of transactions. Both metrics started hovering round July, with Ethereum now recording virtually 100k extra energetic addresses than its rival Bitcoin.

ethereum active addresses
Source: Glassnode
eth btc transactions
Source: Glassnode

Hopium engaged

However, a key indicator might counsel that the Ethereum resurgence might be short-lived. The quantity of Ethereum held on exchanges has risen over the previous a number of months, whereas Bitcoin ranges have declined considerably. This change might point out that the rise in Ethereum dominance against Bitcoin is being pushed by hypothesis on The Merge as a substitute of traders searching for a long-term maintain.

eth btc exchange balance
Source: Glassnode

Another chart exhibits the strike costs of Ethereum choices with out-of-the-money calls receiving huge open curiosity. Strike costs with excessive quantity go as excessive as $10,000 for ETH, which might enhance 455% from the present price. These calls are probably getting used as part of a extra complicated buying and selling technique whereby the dealer additionally shorts or buys places at a decrease strike price to attenuate danger.

eth options
Source: Glassnode

The actuality is that Ethereum is outperforming Bitcoin at the second. On-chain knowledge corresponding to energetic addresses signifies that this performs out with customers interacting with the community slightly than merely HODLing.

The growing stage of Ethereum on exchanges does mood this sentiment barely, however a rise in the quantity of cash held on exchanges is on no account an ideal indicator of bearish sentiment.

There is simply over one month left earlier than all of us discover out whether or not The Merge is absolutely the catalyst for Ethereum to lastly flip Bitcoin.

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