For the past few days, even weeks, Ethereum (ETH) has shown a far lower performance than Bitcoin (BTC). This situation could be the one that pushes ETH miners to sell their holdings in the crypto market.
BTC’s performance overshadows ETH
Last week Forbes published a report where it revealed that the crypto market was experiencing a rather unusual dynamic: Ethereum declines or stalls as Bitcoin recovers.
In this way, since September 1, Ethereum has underperformed Bitcoin; This is precisely what coincides with the rise of decentralized finance (DeFi).
Thus we have seen an Ethereum that floats within the lower region of USD 400; having to increase by about 20% to reach its peak this year of USD 490. So what happens?
Ethereum miners ditch their ETH
The situation with Ethereum has worried the entire crypto market and, consequently, possible answers have been sought.
Currently the conclusion that the data has thrown in the crypto market is that Ethereum miners could be to blame.
Earlier this week Santiment, the crypto analytics platform, noted on Twitter that Ethereum’s mining balance has shrunk rapidly in recent days.
“Ethereum miners have been dumping, and it looks like the increased on-chain activity of the past week and the FOMO trader have slowed down”The platform pointed out on Twitter.
It is worth explaining that the term dumping in the crypto market refers to when miners or investors sell large amounts of their holdings.
Therefore, one reason behind this situation could be the increase in interest that Bitcoin generates; However, the effect that Ethereum miners have had on the cryptocurrency cannot be denied.
What Should We Expect?
In the short term, technical analysts seem to agree that Ethereum will not catch up with Bitcoin in terms of performance. Not to mention that Twitter sentiment has apparently turned against Ethereum but that should come as no surprise.
However, Forbes explained that there are certain factors that, at least in the medium term, could benefit Ethereum but for this it will be essential that ETH miners change their strategy.