Bitcoin's 270% Surge Outpaces Ethereum's 0% Growth Since 2022

Samson Mow, CEO of JAN3 and a prominent Bitcoin advocate, has sparked market discussion with his recent critique of Ethereum's price. Through a post on X, Mow asserted that Ethereum, the second-largest cryptocurrency, is "exponentially overvalued." His remarks come at a time when Bitcoin is showing a strong recovery from the Black Monday crash, highlighting a widening profitability and valuation gap between the top two cryptocurrencies.

In recent years, Bitcoin has outperformed Ethereum significantly. Since August 2022, Bitcoin has surged by 270%, currently trading at an impressive $82,000. In contrast, Ethereum has seen minimal movement, trading around $1,500, which is nearly the same as its $1,600 price from 2022. This stark difference in price performance was a key point in Mow's argument that Ethereum’s valuation does not align with its fundamentals.

Mow emphasized that Ethereum's supply dynamics are a critical issue. Bitcoin's capped supply of 21 million coins is central to its scarcity-driven value proposition. Ethereum, on the other hand, has a circulating supply of 122 million tokens, with 72 million premined at launch. This practice of premining has long been criticized by crypto purists. Mow suggested that if Ethereum had a supply close to Bitcoin’s 21 million, ETH would be worth $9,300 right now. He pointed out that some people are paying $9,300 per unit of something that’s 60% printed from thin air.

This is not the first time Mow has contributed to the Bitcoin vs. Ethereum debate. He has previously urged investors to abandon Ethereum and invest in Bitcoin, predicting dire outcomes for ETH holders. Bitcoin’s profitability has been far better than Ethereum’s in the past two years, reflecting the sentimental divide between Bitcoin maximalists and Ethereum supporters.

As the debate continues, Ethereum has recently hit a multi-year low of $1,400. This downturn came amid global economic uncertainties. However, with the announcement of a tariff pause, Ethereum rebounded to $1,600. Ethereum started trading at $1,520 and showed strict range-bound behavior throughout the day. A slight uptrend formed early in the day, leading Ethereum to go on a slow uptrend up to $1,577. However, as it approached resistance, the RSI went to near-overbought levels, and a slow downtrend followed. At 17:30 UTC, Ethereum touched the $1,588 resistance. With the RSI now overbought, a downtrend followed, but the Ethereum price established a higher support at $1,546. Ethereum tested this support a few times, and the RSI reacted quickly to any upward pressure, making it difficult for the Ethereum price to break out. Right after the downtrend, oversold conditions prevailed.

As of now, Ethereum has formed an uptrend within the range, but the RSI is overbought. Ethereum has not even tested the resistance yet. Given that, Ethereum looks set to return to the support level in the coming hours. However, if buying pressure persists, Ethereum may have an upward breakout. But with the market refusing to buy Ethereum at a higher price, a deep correction may occur.