Bitcoin Is for Holding; Ethereum for Trading. Here’s the Proof

Ethereum may be setting up to outperform Bitcoin in the short-to-mid term. The ETH/BTC ratio, a key chart that measures Ethereum’s strength against Bitcoin, recently flipped its 50-week moving average for the first time since 2023. This kind of move often means a trend reversal.

Experts have said that this could mean the start of a mini altcoin cycle, with Ethereum leading the way. If that’s true, Ethereum could end this market cycle around $7,500, while Bitcoin could land somewhere between $220,000 to $250,000.

Source: X

Analyst Scott Melker also thinks Ethereum might do better than Bitcoin in the short term, but only as a trade. “It does look like Ethereum should outperform as a trade from here. But to be clear, it’s a trade. If you’re trying to buy an asset that you want to hold for 20 or 30 years, it’s hard to beat Bitcoin. I don’t think that there’s much argument,” he said.

Also, Ethereum has been heavily criticized lately. Some people said it’s a dead project or that Solana has replaced it. Others have pointed out problems with the Ethereum Foundation. But Melker sees all this negativity as a buying opportunity.

What’s next for Ethereum?

Ethereum appears to have reached a short-term peak after a strong rally. Although the price is still holding above the important support level of $3,630, recent price movements show that Ethereum may be entering a cooling-off phase or a correction.

Source: TradingView

As long as Ethereum stays above $3,630, there’s still a chance it could push higher. But if it falls below that level, it would hint that a deeper pullback is underway. In that case, Ethereum might drop into the next support zone between $3,591 and $3,476. That doesn’t mean the price must fall all the way to $3,476, but breaking $3,630 would increase the risk of a sharper correction.

On the other hand, if the price manages to stay above $3,630 and break above $3,855, it would point to continued bullish strength.

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