Ethereum Signals Trend Reversal Against Bitcoin

The Most Important Points at a Glance
Ethereum (ETH) is facing a potential trend reversal against Bitcoin (BTC). Following the latest Federal Open Market Committee (FOMC) meeting, both cryptocurrencies have reclaimed key resistance levels. While Bitcoin continues to be regarded as a stable store of value, Ethereum could gain dominance through increasing capital inflows. However, the question remains: Can ETH surpass BTC in the next market recovery?
Market Movements After the FOMC Meeting
The U.S. Federal Reserve has kept interest rates unchanged at 4.25% – 4.5%. Nevertheless, market participants are speculating on two rate cuts this year, leading to a rise in riskier assets. Bitcoin broke through the $85,000 mark with a 5.02% increase, while Ethereum surged by 6.45% to over $2,000.
The ETH/BTC exchange rate is showing initial signs of a possible reversal in favor of Ethereum. The MACD indicators on a daily basis suggest a bullish trend, while trading volume has reached a two-week high.
Ethereum vs. Bitcoin: Who Will Dominate the Next Market Phase?
Ethereum has recently seen strong capital inflows. A significant transaction from Donald Trump’s World Liberty Financial indicates institutional interest: The organization purchased 4,468 ETH worth $10 million. At the same time, retail investor demand has increased, leading to an outflow of 139,000 ETH from exchanges.
Bitcoin, on the other hand, remains stable due to consistent inflows into exchange-traded funds (ETFs). These purchases reinforce confidence in BTC as a long-term investment.
Key Resistance Levels for ETH
For a sustained recovery, Ethereum must break through the $2,500 mark. Additionally, an increase in the ETH/BTC exchange rate above 0.025 is necessary to confirm a capital rotation from Bitcoin to Ethereum. Otherwise, ETH could fall back below the $2,000 threshold.
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Our Assessment
Ethereum is showing signs of recovery, but market movements remain speculative. While Bitcoin continues to attract capital as a safe haven, Ethereum could benefit from increased institutional purchases. The key factor will be whether ETH can sustainably break through resistance levels. Without clear signals, the market outlook remains uncertain.