According to Steno Research analysts, Ethereum could soon surpass Bitcoin as its on-chain activity continues to grow. While Ethereum has lagged behind Bitcoin recently, the analysts believe that ETH is preparing for a strong recovery.
Despite a modest 8% increase in value, compared to Bitcoin’s 43% rise, analysts are optimistic about Ethereum’s future. They point out that during the last bull cycle, Ethereum’s price more than doubled in less than two months, significantly outperforming Bitcoin. This historical data has led to expectations of a similar trend emerging in the near future.
Federal Reserve Actions Favor Ethereum’s Growth
One factor supporting this outlook is the Federal Reserve’s anticipated interest rate cuts. Analysts believe this could boost on-chain activity, which would greatly benefit Ethereum. The increased network engagement and usage might provide ETH with the momentum needed to close the gap with Bitcoin.
Aside from the Fed’s actions, historical data also suggests that Ethereum is poised for a breakout, positioning itself to potentially outperform its larger rival, Bitcoin, in the coming months.
Optimistic Outlook for Ethereum Towards the End of the Year
Bitwise, a well-known asset management firm, recently released a report expressing optimism about Ethereum’s price potential. The report indicated that Ethereum could see a significant upward trend towards the end of the year, supported by growing interest and on-chain activity.
With these factors in play, Ethereum’s underperformance could soon be a thing of the past, as analysts continue to predict that ETH may outpace Bitcoin in the next phase of the market cycle.
