Ethereum Gains 3x Against Bitcoin In Bear Crypto Market. Time To Buy?

Ethereum (ETH) surged five per cent over the last one-day trading session, as against Bitcoin (BTC) two per cent gain, on Monday, June 7 (9:40AM EST).

The former also gained US$ 31.16 billion in one-day trading volume, surpassing Bitcoin’s score of US$ 29.65 billion in the same period.  

Bitcoin has been trading under a bull trap following the May 19 dip, unable to breach the U$ 40,000-mark since last week. This dip comes despite a market-moving announcement from El Salvador President Nayib Bukele, who is likely to bring a bill to make the largest cryptocurrency a legal tender.

The coin declined below US$ 35,000 apiece multiple times over the weekend. 

Bitcoin Versus Ethereum

Ether has rebounded almost 61 per cent from its steep dip of 1,737 apiece on May 19. In contrast, Bitcoin has increased by about 19 per cent as compared to its crash price to US$ 30,681 a token in May.

However, Bitcoin still holds over 41 per cent chunk of the overall crypto market. Ether, on the other hand, has a 19.5 per cent portion. 

At the time of writing this, Ethereum was marching at US$ 2,800 per token, with a market cap of US$ 324 billion. Bitcoin, meanwhile, was trading at US$ 36,500 a coin, with a market cap of US$ 677 billion. 

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Is it the Right Time to Buy Ethereum?

Ethereum has delivered three times returns against Bitcoin since the market collapse in May. The largest crypto token has grown 26 per cent year-to-date (YTD) while the second-largest cryptocurrency climbed 280 per cent, a surge of over 10 times against its rival. 

Ethereum is likely to launch its upgraded version ‘Ethereum 2.0’ this year. Till then, its second layer has been resolving high gas fees and traffic issues. 

Crypto analysts have pegged the nearest target for the token at US$ 3,000 per Ether. However, bull trap and rising fear, uncertainty, and doubt (FUD) continue to rule the crypto market, and that could be a reason for a pullback in the upcoming trading sessions.   

Buzz Around Green Bitcoin

Crypto mining companies are looking to adopt clean energy techniques after Tesla (US:TSLA, NASDAQ:TSLA) suspended Bitcoin payments over environmental concerns.

On June 6, Square (US:SQ, NYSE:SQ) agreed to invest US$ 5 million to develop a solar-powered bitcoin mining site in collaboration with the Canadian blockchain tech company, Blockstream. 

These developments came in the wake of rising concerns over greenhouse gas emissions from the mining operations of Bitcoin. The environmental issue has reportedly caused institutional investors to pullback and triggered the recent price drop in Bitcoin.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.

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