Will the value of Ethereum against Bitcoin return to pre-poor highs?

Ethereum’s value against Bitcoin reached 0.084 BTC, its 2022 high, just before the merger. The recent Ethereum/Bitcoin price rally has once again prompted investors to wonder if Ethereum’s value against Bitcoin could return to pre-merger levels.

According to CryptoSleet, the value of Ethereum against Bitcoin increased a lot before the Marj update on September 15 (24 September). However, the second-largest digital currency by market capitalization failed to reach its record high in 2017.

The value of Ethereum against Bitcoin reached 0.12 Bitcoin in June 2017 and 0.1 Bitcoin in 2018. The Ethereum/Bitcoin pair has since been struggling to stay above the key resistance of 0.075 BTC, according to Cryptosatellite’s analysis of Glassnode data.

The price of Ethereum fell to 0.018 Bitcoin during the bear market of 2019. However, the Ethereum cycle has performed much better since then, testing the 0.075 Bitcoin resistance once in November 2021 (Aban 1400) and again before Marj in September 2022 (September 1401).

After a price correction in October, Ethereum’s value against Bitcoin has risen again. Currently, the price of the Ethereum/Bitcoin pair is around 0.076 Bitcoin.

There are several accelerating factors that could possibly cause the Ethereum price to grow again. While there has been limited innovation in the technology underlying Bitcoin, Ethereum has seen major changes to its network.

With Ethereum’s supply shrinking after the Marj, the digital currency became an anti-inflationary asset for the first time this month. At the current trend, the total supply of Ethereum will decrease by 0.07% over the next 356 days. Most people consider a decline in aggregate supply as a bullish indicator for analyzing future price action.

However, several factors could change the projected growth of Ethereum supply; Factors such as the amount of Ethereum staked in the network and the amount of Ethereum burned from transaction fees. You can check Ethereum supply and burn data on ultrasound.money website.

The review of open contracts of option trades (Options Open Interest) further strengthens the bullish perspective of Ethereum price growth in the fourth quarter of this year. There are a significant number of call options contracts in the amount of $3,000 that expire on December 30.