ETH price rose more than 15% in the first 12 days of October, compared to Bitcoin’s 30% increase over the same period, however, the second largest cryptocurrency is currently declining valued in BTC.

So far, ETH / BTC has fallen more than 12% in October (and fourth quarter 2021), hitting 0.060215 BTC on Tuesday for the first time in over two months.

ETH / BTC daily price chart | Source: TradingView

The decline also pushed ETH / BTC below one of its longest active support areas, the 200-day exponential moving average (200-day EMA, orange wave), as shown in the graph above. This increases the downside risk, with 0.055304 BTC being the next potential target.

Dominance rate of Bitcoin rises on hope Above ETF

Another cause of the ETH / BTC weakness is the increasing dominance of Bitcoin in the crypto market.

Specifically, the Bitcoin Dominance Index (BTC.D), which measures the capitalization of the leading cryptocurrency compared to the rest of the market, rose from 42.39% on October 1st to 46.64% on December 10th. gone up. On the other hand, the ETH dominance (ETH.D) fell from 18.15% to 17.57% over the same period.

Bitcoin Dominance Index Daily Chart | Source: TradingView

This shows that so far this October, more capital has flowed into the Bitcoin market than Altcoins.

Bitcoin’s growing dominance coincides with expectations that the US Securities and Exchange Commission will approve four Bitcoin exchange-traded funds (ETFs) over the next few weeks, including: Global X Bitcoin Trust, Valkyrie XBTO Bitcoin Futures Fund, WisdomTree Bitcoin Trust, and Cryptoin Bitcoin ETF.

SEC chairman Gary Gensler has hinted an optimistic outcome for the Bitcoin ETF, despite having repeatedly turned down similar requests for eight consecutive years. However, this time Gensler noted that Bitcoin ETF applicants are relying on the Investment Company Act of 1940. This law offers greater investor protection.

Earlier this week, two “lightweight” Bitcoin ETFs began trading in the US, namely the Invesco Alerian Galaxy Crypto Economy ETF (SATO) and the Invesco Alerian Galaxy Blockchain Users and Decentralized Commerce ETF (BLKC). However, the funds invest 80% of their assets in crypto-related companies, not Bitcoin itself.

15 Minute SATO ETF Price Chart | Source: TradingView.com

The SEC has also approved a third crypto-stock ETF. Known as the Volt Crypto Industry Revolution and Tech ETF (BTCR), the fund will “reach out to companies that hold the majority of their net assets in Bitcoin or derive most of their income from Bitcoin mining, lending or trading.”

Bitcoin is about to “crazy“?

James Seyffart, ETF Analyst at Bloomberg Intelligence, called This news will be “very bullish” for Bitcoin. Likewise, the independent market analyst Lark Davis suspect The market goes crazy when the SEC approves a Bitcoin ETF with actual BTC exposure.

“I don’t think people are fully prepared for how crazy the market will be when the Bitcoin ETF is approved!”

So it seems that speculation over the past few days about the approval of a Bitcoin ETF has increased traders’ demand for the top cryptocurrency as BTC outperforms top competitors, including ETH.

However, Ethereum has a strong decentralized application ecosystem and remains a major force in the booming DeFi and NFT sectors.

David Gokhshtein, founder of Gokhshtein Media and PAC Global, noted that Ethereum’s healthy network effect could push the ETH price up to $ 10,000 by the end of the year. Meanwhile, the ongoing supply crisis in the ETH market will remain a topic of conversation for the bulls in the future.

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