Unexpectedly, Ether (ETH) had an incredible rise, climbing more than 20% in comparison to Bitcoin (BTC) in just 72 hours. Analysts predict greater upside potential for Ethereum, and the latest gain is tied to BlackRock’s increased interest in Ethereum Exchange-Traded Funds (ETFs). This development coincides with Bitcoin’s celebration of the US launch of spot exchange-traded funds.

The ETH/BTC pair has increased significantly from its yearly low of 0.0478 on January 9 to 0.0587, according to data from Cointelegraph Markets Pro and TradingView. Concurrently, ETH/USD is surging, hitting levels not seen since mid-2022 on the charts.

MACD Divergence Signals Surpassing Bitcoin Amid ETF Anticipation

An additional indication of the positive momentum is a divergence in the moving average convergence divergence (MACD) indicator against Bitcoin on weekly timescales. Ethereum’s advance versus Bitcoin puts it in the league of large-cap tokens outperforming Bitcoin in recent days, despite Bitcoin reaching its greatest levels since the post-ETF announcement in December 2021.

Despite the fact that BTC/USD is hitting new highs, Cointelegraph has noticed that Ether’s remarkable comeback is about to eclipse Bitcoin. The expectation surrounding Ethereum’s prospective U.S. ETF debut later in the year appears to be a big source of this positive trend.

CEO of BlackRock, a well-known asset manager that just introduced a Bitcoin exchange-traded fund (ETF), Larry Fink, stated that he thinks Ethereum ETFs are valuable. Fink’s support for Ethereum was announced the day after BlackRock’s Bitcoin ETF debuted. “The Wolf Of All Streets,” renowned trader, analyst, and podcast host Scott Melker, brought attention to this change by saying, “Larry Fink is already beating the Ethereum drum,” one day following the introduction of Bitcoin. It is a true rotation.”

Analyst Sees Ethereum’s Dominance Continuing

The CEO and founder of trading company MNTrading, Michaël van de Poppe, predicts Ethereum will continue to dominate Bitcoin in the future. He thinks that Bitcoin’s dominance in the market looks to have plateaued, especially in the lead-up to the Bitcoin halving. According to Van de Poppe, as the altcoin bull market picks up steam, Ethereum’s momentum may continue, potentially signaling the peak of Bitcoin’s dominance.

Van de Poppe’s annotation of the dominance chart of Bitcoin corroborates his findings and suggests a potential change in market dynamics. The focus on BTC/USD might shift following the April block subsidy halving, which is regarded as a potential price trigger but not an instant one.

The Squeeze in Bitcoin Supply and ETFs

The story of the ETF incorporates the potential for a large supply constraint on Bitcoin as institutions look to acquire long-term exposure to the cryptocurrency. This might have additional effects on the dynamics of the Bitcoin market and possibly lead to a more pronounced altcoin bull market.

The impact of established participants in the cryptocurrency space, such as BlackRock, and the launch of exchange-traded funds (ETFs), are increasingly significant variables influencing the future course of individual cryptocurrencies. The recent rise in Ethereum’s value relative to Bitcoin indicates how the cryptocurrency market is evolving and how alternative assets are beginning to acquire traction in opposition to the historically dominant Bitcoin.