ETH breaks out vs. Bitcoin — What’s next for Ethereum after 100% gain in January?

The price of Ether (ETH), the native cryptocurrency of the Ethereum blockchain network, achieved a new all-time high on Jan. 25.

At the same time, technical analysis shows that the ETH/BTC pair is breaking out of its multi-year downtrend hitting the highest levels since September 2019, which should be great news for altcoins in general.

ETH/BTC weekly candle chart (Coinbase). Source: Tradingview

The higher highs come less than a week after ETH/USD finally broke its all-time high, surpassing $1,400 for the first time in three years.

Community sentiment is extremely positive

The sentiment around Ethereum has become significantly positive after ETH managed to break its previous record price set in January 2018.

Anthony Sassano, a long-time Ethereum investor and the head of marketing at Set Protocol, said that the rally is representative of the groundwork accomplished by developers in the Ethereum ecosystem throughout the past three years.

ETH and BTC year-to-date performance. Source: Digital Assets Data

Throughout the 2019 bear cycle, ETH was hit the hardest among other large-cap cryptocurrencies. It consistently underperformed against BTC, struggling to gain upside momentum.

But the newfound momentum as a result of the rising demand for DeFi has allowed ETH to outperform Bitcoin in the recent bull cycle. Sassano said:

“This may be hard to believe but the main reason I get so giddy about $ETH going up in price is not the profits. It’s the fact that so many dedicated Ethereum community members spent 3 long years building during a brutal bear market. And now their work is being rewarded.”

On-chain data also demonstrate a similar trend alongside numerous other indicators that suggest the ETH price rally may only be beginning.

For example, according to researchers at Santiment, the development activity on Ethereum followed a similar trajectory as the price of ETH.

Ethereum price versus Github activity. Source: Santiment

This trend shows that the ongoing ETH rally is led by…

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