Economist Alex Krüger Predicts Ethereum’s Time to Shine with ETH Price Rally

Economist Alex Krüger has conducted a market analysis that reveals a significant shift in investor interest from Bitcoin to Ethereum. According to Krüger, Bitcoin’s growth potential has reached its limit, resulting in Ethereum taking the lead.

Krüger notes that the ETH/BTC trading pair has rebounded from a critical level of 0.0479, indicating a potential market bottom. The latest data shows that Bitcoin is currently trading at $45,783, experiencing a slight increase in the past 24 hours. Krüger believes that the approval of a spot market Ethereum ETF could lead to a significant rally for Ethereum.

In a tweet, Krüger mentions that the upside for Bitcoin is limited until there are actual ETF inflows, suggesting that it is now time for Ethereum to take over.

Krüger holds an optimistic stance on Ethereum, pointing out several factors that contribute to the perceived bottom for the ETH/BTC pair. These factors include a narrative shift from Bitcoin ETF to Ethereum ETF, upcoming events like the EigenLayer airdrop, a chart signaling a 50% correction with a fakeout of the 2022 lows, and an overall sentiment of extreme pessimism.

One of the key players in the January market landscape is Ethereum’s Dencun upgrade, which introduces Ethereum Improvement Proposals (EIPs) such as EIP-4844. This upgrade positions Ethereum for a 50% surge and strengthens its position in the cryptocurrency space by introducing “data blobs” to reduce Layer 2 transaction fees.

A successful strategy in recent market fluctuations has been to invest in Bitcoin in anticipation of spot market approval for Bitcoin ETFs. Despite a recent dip in the crypto market, the impact of a potential sell-the-news event following a spot Bitcoin ETF approval seems to have diminished.

While the chances of a sell-the-news event have reduced, Krüger highlights that Bitcoin futures open interest remains high on the Chicago Mercantile Exchange (CME), indicating persistent concerns about price volatility. However, following a significant leveraged sell-off earlier this week, the likelihood of such an event has decreased.

Tags: Bitcoin, Ethereum