Unveiling the Triumphant Rise of Ethereum (ETH) Price Over Bitcoin: A Comprehensive Analysis of 3 Key Factors

Ether (ETH) price remains steady at $2,500 despite an increase in futures liquidations, according to data. Coinglass reported that on January 16, $15.03 million worth of ETH shorts were liquidated compared to $5.3 million for long positions. Despite this, the ETH/USD pair reached a high of $2,614, breaking through the resistance at $2,500. Glassnode data also showed that short liquidations dominated long liquidations on the same day. A report by 10xResearch highlighted Ether’s increasing share of open interest since the beginning of the year. Additionally, Bitcoin’s dominance dropped below 50% for the fourth consecutive day, suggesting that altcoins may perform better compared to Bitcoin. ETH’s dominance has reached a three-month high above 18%. Santiment data shows Ethereum’s price dominance against Bitcoin has surged by 22.4% in the past week. Furthermore, approximately 89,400 new Ethereum addresses were created daily during this period, with 96,300 wallets created on January 16 alone. ETH’s supply on exchanges is nearing its all-time low of 8.05%, indicating a move towards self-custody and staking. These metrics indicate Ether’s current market strength and its potential to outperform Bitcoin in the short term. The latest upgrade to the Ethereum network, called “Cancun-Deneb” or “Dencun,” has been deployed on the Goerli testnet. This upgrade is expected to significantly reduce transaction costs on Ethereum layer 2s and introduce new features. The next testing milestone for Dencun is scheduled for January 30 on the Sepolia testnet, followed by the Holesky testnet on February 7. The implementation date for the mainnet has not been announced yet. This article does not provide investment advice, and readers should conduct their own research before making any decisions.