The native token of Ethereum has also gone down alongside the other cryptocurrencies in the market on the 4th of December. Nevertheless, this move on the downside did not, in any way, deter the cryptocurrency from touching a three-year high against its biggest competitor and the largest cryptocurrency in the world, Bitcoin.
As a result, the ETH/USD Exchange rate did increase by around 11.50% to touch 0.0835 BTC for the first time since May of 2018. The price rally of the pair also appeared in contrast with the 15% price drop of the cryptocurrency against the USD on the 4th of December- which came about in the wake of a market-wide selloff that saw BTC plunging by around 21% intraday.
The Ethereum vs. Bitcoin “hedge” narrative emerges
While the losses suffered by Ethereum were quite substantial, they were still quite salvageable compared to Bitcoin as the ETH/BTC pair went up to a three-year high. At the same time, some of the crypto analysts have also started believing that most of the investors were looking at the second-largest cryptocurrency in the world as a safe haven against Bitcoin during the price crash on the 4th of December.
Crypto Birb, an independent analyst of the crypto market, tweeted on the 4th of December that most crypto investors were looking at Ethereum as a hedge here. They further pointed out a four-hour ETH/BTC price chart that posited that the pair was retracing itself sharply after testing the 200-period moving average as the major support.
Lukas Enzersdorfer-Konrad, the chief product officer at Bitpanda, stated that Ethereum was comfortably outperforming Bitcoin by quite a significant margin this year, and it also led to the cryptocurrency increasing its dominance in the market by 22%.