ETH/BTC Hits 3-Month High: Is Ethereum Finally Outperforming Bitcoin?

Bitcoin just let go of the market, and it didn't have to go down to do it.

The ETH/BTC pair had the best weekly close in approximately 12 weeks, reaching a level of ~0.0289. That's a sign that the value of BTC per ETH has increased over the last 3 months, and it's a subtle change that occurred while the majority of the news focused on Bitcoin.

The action coincides with the overall crypto marketplace having taken in almost $57 billion in new investment since it hit its latest low on July 24.

That liquidity seems to be shifting to the first asset that is Ethereum, a pattern that has been occurring before great altcoin rallies.

The pair has broken a multi-month descending resistance line, suggesting that the next resistance level is around $2,464, which is Ethereum's short-term technical level.

Some analysts have made longer-term calls as high as $12,000 to $17,000; however, these calls are based on Ethereum maintaining a higher price level than its current supports.

This chart contains a real trading lesson. Historically, when ETH/BTC breakouts happen, there wasn't just a capital spillover into ETH but into the wider altcoin market as well.

People who trade only based on BTC or ETH price data without any other data may miss that rotation completely, sometimes for weeks.

All of this does not guarantee that Ethereum would continue to beat in this aspect. The ratio has yet to cross its own 200 period moving average to validate the trend as a lasting one versus a short-term rally.

Bitcoin's dominance of nearly 57% of the total market also indicates that the dominance has not been lost much since the recent run on Ethereum.

Such situations have the potential to change both ways rapidly, particularly because regulatory news keeps influencing the overall market.

A buy or sell trade or a time rotation of these two assets should be based on your own risk tolerances and time horizon, not on one chart pattern.

This is not investment or financial advice.

Are you rotating any Bitcoin into Ethereum right now, or is BTC still your safer bet in this market?