Ethereum
5 reasons why Ethereum (ETH) is much stronger than Bitcoin (BTC) right now — TradingView News
Ethereum’s price action certainly raises serious questions, as the second-largest cryptocurrency on the market is clearly losing steam and is unlikely to gain enough ground to rebound right now. But basically, she has at least five reasons to recover sooner than expected.
Mt. Gox has no ETH
The looming risk of a massive sell-off in Mt. Gox is one of the main factors weighing on Bitcoin. The trustee of the defunct exchange is expected to return a significant portion of Bitcoin to creditors, which could intensify selling pressure. For this reason, Ethereum has a clear advantage over BTC, which could enter the market and drive its price down.ETHUSD Chart by TradingView
German government not selling Ethereum
Selling pressure in the market was exacerbated by reports that the German government sold the seized Bitcoin. Bitcoin’s recent struggles are partly attributable to this action.
On Ethereum, there is no selling pressure from miners
Since the release of Ethereum 2.0, the Proof-of-Stake (PoS) consensus mechanism has replaced the Proof-of-Work (PoW) method. This implies that Ethereum miners will no longer have to sell a lot of ETH to pay for their overheads. However, in order to cover their costs such as electricity, Bitcoin miners must constantly sell their Bitcoin.
ETH will also get an ETF
Ethereum, although not yet officially confirmed, is about to become its own exchange-traded fund, much like Bitcoin. Institutional investors could gain exposure to Ethereum through an exchange-traded fund without having to physically hold the asset, which could increase demand.
Bigger supply shock on ETH
The introduction of a transaction fee burning mechanism via EIP-1559 resulted in a significant reduction in Ethereum supply. A supply shock could occur for the asset due to this mechanism, which would reduce the total supply of ETH.