- Ethereum keeps flashing massive bullish signals, attracting investors from Bitcoin.
- Peter Brandt flips bullish on Ethereum, converting up to half of his Bitcoin holdings to Ethereum.
- High transaction fees on the Ethereum protocol suggests that the rally might delay as investors wait for normalization.
Ethereum continues to receive massive attention from both investors and traders. The largest altcoin has managed to sustain price action above $1,000 despite the rejection at the record high of around $1,481. Many analysts believe that Ethereum will shoot up to $3,000 in the near term, as covered in the recent past.
Consequently, Peter Brandt, a prominent investor, believes that “ETH/BTC is the best bet.” He is so bullish on Ether to the extent of converting a substantial portion of his BTC holdings to ETH.
Why is Ethereum attracting investors’ attention?
The 3-day ETH/BTC chart brings to light the formation of an inverse head-and-shoulders (H&S) pattern. This pattern is used in technical analysis to predict bullish outlooks once the asset’s price breaks above the neckline’s resistance. Traders incorporate this pattern when entering into a long position. It is essential to watch out for a surge in volume to confirm the sharp breakout.
Based on the H&S pattern, a conservative prediction is a 60% upswing to 0.0367 from the neckline’s resistance. However, the most optimistic breakout target is a 150% spike to 0.099. Realize that the Moving Average Convergence Divergence stresses the bullish outlook following a recent cross of the MACD line (blue) above the signal line.
ETH/USD 3-day chart
Is ETH/BTC the best bet to make? – Peter Brandt thinks so
Peter Brandt is a long-term Bitcoin bull that has recently flipped bullish on Ethereum. Intriguingly, the investor who owns Bitcoin agrees that the largest cryptocurrency “has had one heck of a run.” And he believes that “it has a long way to go.”
However, he has turned his attention to the pioneer smart contract token. He reckons that ETH/BTC is on the verge of a significant move. Brandt is comfortable with converting between a third and a half of all his Bitcoin holdings to Ethereum.
Simultaneously, another analyst, CryptoThies, predicts ETH/BTC possible rally to its all-time high around 0.1. The analysts shared his roadmap prediction of the digital asset pair, suggesting that February will be an exciting month for ETH/BTC.
Potential roadmap for $ETH vs $BTC in 2021. Based on standard crypto seasonality (Oct-June, followed by consolidation June-October). Assumes that #ethereum revisits former ATH vs #BTC at .1, which would be around 30% market dominance pic.twitter.com/gbVnjRNmPK
— CryptoThies ♔ (@KingThies) January 31, 2021
Looking at the other side of the picture
Santiment, one of the leading on-chain analysis platforms, cautions that the rising gas fees on the protocol could impede the rally. Currently, $11.45 (three-week high) is needed to complete a transaction on the Ethereum protocol.
Ethereum average fees/median fees
Usually, high fees lead to a cooling effect as users wait for the fees to return to normal levels. Santiment suggests that a market top is not a guarantee. However, the increase in gas fees demands caution.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks

Bitcoin Weekly Forecast: BTC shows weakness, bears aiming for $90,000 mark
Bitcoin (BTC) price hovers around $97,000 on Friday after losing nearly 5% in the last three days. CryptoQuant weekly report shows that activity on the Bitcoin network has declined to its lowest level in a year.

ONDO Price Forecast: Ondo Chain launched while TVL rises to $654 million
Ondo price is nearing its key weekly resistance of $1.38 on Friday, and a firm close above this level hints at a rally ahead. Ondo launches its Ondo Chain, a new Layer 1 blockchain purpose-built for institutional-grade RWAs.

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP are at risk of for further declines
Bitcoin (BTC) hovers around $97,400 on Friday after losing nearly 5% in the last three days. Ethereum (ETH) and Ripple (XRP) fail to recover and face rejection from their key levels, hinting at further corrections.

XRP ETF gains traction as SEC acknowledges Grayscale filing for Solana and Litecoin funds
Ripple's XRP was in the limelight on Thursday following the Chicago Board Options Exchange (Cboe) 19b-4 filing to the SEC to list and begin trading XRP exchange-traded funds (ETFs) for asset managers Canary Capital, WisdomTree, 21Shares and Bitwise.

Bitcoin: BTC shows weakness, bears aiming for $90,000 mark
Bitcoin (BTC) price hovers around $97,000 on Friday after losing nearly 5% in the last three days. CryptoQuant weekly report shows that activity on the Bitcoin network has declined to its lowest level in a year. Traders should watch FTX's upcoming repayments to creditors starting on February 18, which could bring in volatility for Bitcoin prices.

The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.