Bitcoin pioneer Samson Mow predicts Ethereum investors will switch back to Bitcoin once ETH prices get high enough, potentially reversing a five-week surge in Ether.
However, historical market cycle patterns could indicate otherwise.
“Most ETH holders have a lot of BTC (ICO/insiders) and they are rotating that BTC into ETH to pump it on new narratives (Ethereum Treasury co’s),” said the CEO of Bitcoin adoption firm JAN3 on Sunday.
He added that once Ether (ETH) is high enough, “they’ll dump their ETH, creating new generational bagholders, and then rotate the gains back into BTC.”
“No one wants ETH in the long run,” the Bitcoin (BTC) maximalist said.
Mow, who has repeatedly ridiculed altcoins, added that it will be “challenging” for ETH to break all-time highs “because the closer you reach that psychological level, the stronger the drive to sell,” describing it as a “Bagholder’s Dilemma.”
ETH/BTC ratio breaks trend
Mow continued to state that Bitcoiners shouldn’t be worried about the ETH/BTC ratio breaking the downward trendline.
“Ethereum has always been a vehicle for those people to get more Bitcoin. It was true for the ICO, and it’s true now.”
The metric, which is a measure of the price of Ether in terms of BTC, is currently 0.036, according to TradingView.
It has doubled since its five and a half year low of 0.018 in April as Ether has surged while Bitcoin has remained relatively static.
Ethereum advocate Anthony Sassano, labeleld the post as “old school Bitcoin maxis” criticizing Ethereum, and that it was a bullish sign for ETH.
Rotation back into altcoins
Investor and entrepreneur Ted Pillows offered a different perspective on Sunday, forecasting that Ether will hit a new peak price and spark a mini altseason, before capital rotates back into Bitcoin until it hits around $140,000, followed by a final rotation back into Ether and altcoins.
Related: Michael Saylor is not sweating the rise of Ethereum treasury companies
This is a typical crypto rotation pattern that has played out in previous bull market years, with Ethereum and altcoins lagging Bitcoin with their cycle highs.
Bitcoin dominance has also declined 10% since late June as the rotation into altcoins continues.
Ether’s “incredible pump to $4,300 from institutional interest in strategy reserve plays, has aided DeFi platforms in gaining higher TVL, while “innovative yield farming and lending strategies draw users back,” Nick Ruck, director at LVRG Research, told Cointelegraph.
ETH weekly close highest since 2021
Meanwhile, ETH prices have seen their highest weekly candle close since November 2021 as the asset topped $4,300 in late trading on Sunday following a weekly gain of 21%.
Ether is now just 12% away from its 2021 all-time high of $4,878, and momentum is still very much with it despite the derision from Bitcoin maxis.
ETH/USD weekly chart on Coinbase. Source: TradingView
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