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Ethereum sets two new all-time records in USD in a single day, but it still has a long way to go in BTC terms.
On May 12, Ether (ETH) hit a new all-time high, as the largest altcoin started on its path to $5,000, according to analysts.
Funding rates could hold key to ETH resilience
Data from TradingView tracked ETH/USD as the pair put in two all-time highs in a single day on Wednesday.
Ether, which is part of the now-famous “alt season 2.0,” reached $4,350 earlier in the day, only to improve its success hours later and cross $4,380.
Many pundits’ predictions of Ethereum’s native token reaching the milestone price threshold are in the news now that it is less than 15% away from $5,000.
Among them is that of Cointelegraph contributor Marcel Pechman, who in an interview last week highlighted data which suggested that a $5,000 ETH was a matter of “if,” not “when.”
According to Pechman, financing costs are failed to keep up with price increases, so institutional buyers are sitting on the sidelines at about $3,500. Institutions, on the other hand, became more successful.
“It tells me that pro traders have been bullish for quite some time — for a couple of weeks — but the retail traders are still waiting for a buy opportunity,” he concluded.
Since then, financing prices have only risen slightly, signalling that the market’s upward trend has space to grow.
According to Pechman and Cointelegraph, ETH exchange balances are still declining amid the potential to benefit.
ETH/BTC still needs to double
Part of their resiliency can be attributed to the fact that they began trading at a young age. Those who bought ETH with Bitcoin (BTC) at any point since mid-June 2018 stood in the red at the time of writing — the ETH/BTC pair already had a long way to go to match its all-time peaks.
These were set at 0.144 BTC a year ago in June 2017. The USD peak on Wednesday corresponded to 1 ETH being worth a comparatively moderate 0.077 BTC.
ETH is now ~0.08 BTC and might even pump to 2017 peak levels of 0.12 BTC. But beware that after a pump altcoins frequently return to their normal BTC denominated ranges (or lower). #Cointegration #PairsTrading pic.twitter.com/fk36Yq6EcE
— PlanB (@100trillionUSD) May 12, 2021
Despite this, Ethereum has outperformed Bitcoin in terms of gains over the last year, garnering increased interest from major media outlets, some of whom have started to educate readers on the distinctions between the two biggest cryptocurrencies.