Ethereum’s Price Gap with Bitcoin May Signal Rebound

New York, NY – After months of underperformance, Ethereum‘s price gap with Bitcoin might be set for a change, experts say. Ethereum has lagged behind Bitcoin and other altcoins over the past five months, but analysts remain hopeful for a rebound this May, a month historically strong for the cryptocurrency.

Since 2016, Ethereum has achieved an average return of nearly 28% in May, according to Coinglass data. This year, analysts are closely monitoring Ethereum for signs of potential recovery. A report from CryptoQuant highlights Ethereum as ‘extremely undervalued’ compared to Bitcoin, marking this the first occurrence since 2019.

‘Historically, this has led to Ethereum outperforming,’ said an analyst at CryptoQuant. However, they cautioned that supply pressure, weak demand, and stagnant activity could hinder a rebound for the cryptocurrency.

In the crypto market, opinions vary on future trends. Some market insiders speculate that if positive news was on the horizon, it would already be reflected in current market activities, although over-the-counter deals remain a possibility.

Despite the short-term challenges, the Ethereum Foundation is pursuing long-term strategies through the upcoming Pectra upgrade. This upgrade aims to make decentralized applications more user-friendly, akin to traditional apps.

Artemiy Parshakov, vice president at staking firm P2P.org, discussed how the introduction of account abstraction with the Pectra update opens new possibilities for the platform. Tracy Jin, COO at MEXC, sees the Pectra upgrade as an opportunity that could positively influence the broader market dynamics.

With Bitcoin’s dominance nearing a yearly high of 63.9% and many altcoins struggling for sustained traction, Jin believes that the Pectra upgrade could shift investor sentiment in favor of altcoins.