Advertisement
Advertisement

Ethereum vs. Bitcoin: ETH/BTC ‘Doji’ Raises 70% Bounce Potential

By:
Bob Mason
Published: Feb 14, 2025, 08:55 GMT+00:00

Key Points:

  • A Dragonfly Doji on the ETH/BTC two-week chart signals a potential bullish reversal, with Ethereum targeting the 0.048 BTC resistance.
  • World Liberty Financial (WLFI) has amassed 70,000+ ETH, potentially strengthening demand and supporting Ethereum’s market recovery.
  • Solana’s rising adoption, regulatory uncertainty, and Layer 2 fragmentation continue to challenge Ethereum’s dominance despite its upcoming Pectra upgrade.
article from production

The Ethereum-to-Bitcoin (ETH/BTC) ratio is forming a Dragonfly Doji on its two-week chart, a candlestick pattern that often signals a bullish reversal.

ETH/BTC is Eyeing 70%-Plus Rebound

Dragonfly Doji is characterized by a long lower wick and a small body at the top. This suggests that after a period of intense selling pressure, buyers have stepped in to push the price back up, indicating a potential shift in momentum.

Historically, ETH/BTC has responded strongly to this setup. In December 2020, a Dragonfly Doji preceded a 275% surge, while a similar formation in September 2019 led to a 150% rally. These patterns suggest that Ethereum could be gearing up for a sharp recovery against Bitcoin.

ETH/BTC two-week price chart
ETH/BTC two-week price chart. Source: TradingView

Further strengthening this outlook, the Relative Strength Index (RSI) for ETH/BTC is in oversold territory, a condition that typically precedes price rebounds. Additionally, the pair is testing a historical support area (the green range in the chart above).

If buyers continue absorbing sell pressure at current levels, Ethereum could regain strength against Bitcoin, potentially targeting its 50-2W exponential moving average (50-2W EMA; the red wave) at around 0.048 BTC, up over 70% versus the current prices.

Ethereum Market Fundamentals

World Liberty Financial (WLFI), a firm linked to the Donald Trump family, has been steadily accumulating ETH. As of early February 2025, WLFI’s Ethereum holdings had grown to over 70,000 ETH, valued at approximately $235 million.

Accumulating large amounts of ETH may provide a strong demand base, helping Ethereum regain momentum against Bitcoin.

Long-term projections for Ethereum remain optimistic. Various analysts have provided 2025 price forecasts:

  • VanEck predicts Ethereum could peak at $6,000 in this cycle.
  • Investing Haven forecasts ETH reaching $5,990, with an average price of $4,330.

These projections are based on factors such as increasing institutional adoption, advancements in Layer 2 scaling, and improved regulatory clarity.

Meanwhile, Ethereum co-founder Vitalik Buterin has recently increased his involvement in Ethereum’s scalability, efficiency, and decentralization efforts. He has outlined multiple key initiatives, including:

  • Pectra Upgrade: This update, set to launch on April 8, 2025, will enhance scalability, validator operations, and network efficiency.
  • Account Abstraction & Ethereum Virtual Machine (EVM) Enhancements: Designed to make Ethereum more developer-friendly and efficient.
  • Decentralization Efforts: Buterin’s recent speeches, including at Devcon 2024 in Bangkok, emphasized Ethereum’s vision as the “world computer” supporting a broad digital economy.

Ethereum’s Prevailing Challenges in Attaining Bullish Momentum

Despite technical signals pointing toward a rebound, Ethereum has been underperforming Bitcoin and the broader crypto market in recent months. The market sentiment reflects this growing skepticism.

One post on X noted:

“Ethereum is losing ground to Bitcoin as institutional capital prioritizes BTC over ETH. Layer 2 fragmentation, regulatory uncertainty, and competition from Solana continue to weaken Ethereum’s dominance.”

Another user dismissed the idea of an imminent altcoin season, stating:

“ETH’s breakout will only happen if BTC allows it. The ‘altseason ignition’ theory has been a broken record for years.”

Crypto analyst Ali Martinez highlighted the shifting investor focus away from Ethereum and other major altcoins. He noted that speculators are increasingly flocking to “worthless memecoins” launching on Solana and other chains, drawing liquidity away from ETH.

Source: X
Source: X

Solana’s lower transaction costs and faster speeds have attracted retail traders and institutional investors, making it one of Ethereum’s most serious challengers. Meanwhile, Ethereum’s gas fees remain a deterrent, forcing many projects to explore alternative chains or Layer 2 solutions.

About the Author

Bob MasonChief Crypto Boss

TEST 30 He has written extensively for a broader audience and his current focus is on developments relating to the financial markets including, but not limited to currencies, commodities, alternative asset classes, and global equities.

Advertisement