The BTC/ETH ratio is currently at 18x, reaching levels not seen in two years, indicating that Bitcoin (BTC) has maintained a significant lead over Ethereum (ETH) in terms of market value.

Traditionally, Ethereum has tended to outperform Bitcoin during bull market phases. However, despite Ethereum’s strength, the current ratio suggests that BTC continues to outpace ETH significantly. Ethereum often experiences sharper price increases during bull runs due to its smaller market capitalization compared to Bitcoin, allowing for larger percentage gains.

Ethereum’s role in decentralized finance (DeFi) and as a platform for non-fungible tokens (NFTs) typically fuels optimistic speculation. The chart shows a historical trend where the BTC/ETH ratio decreases when ETH gains ground on BTC during optimistic periods.

Many in the Ethereum trading community are speculating on the possibility of a new all-time high (ATH) in 2024. According to CryptoQuant, a notable increase in open interest in Ethereum futures indicates growing confidence among traders. Open interest, representing the total number of outstanding futures contracts, has reached its highest level since July 2022, corresponding with Ethereum’s recent price recovery from a significant support level of $1,500 to over $2,800.

While these indicators suggest bullish sentiment among futures traders, caution is advised, given the rapid climb in Ethereum’s price and the surge in open interest, which could indicate a market prone to volatility.