A widely followed crypto analyst is making the case for why a popular layer-1 smart contract platform’s rise against the top two cryptos could lead to more gains in the future.
In a new strategy session, Benjamin Cowen tells his 709,000 YouTube subscribers that Avalanche (AVAX) has been moving higher in comparison to Ethereum (ETH) for several months.
Cowen also says the “worst-case scenario” for AVAX might be that it could oscillate in value over time.
“There is a chance that it increases against ETH. It’s been steadily increasing for quite a while now if you go back to October of 2021, it’s been slowly moving higher.
I think the key thing we’ve got to look for is, are we going to get a break out here [approximately 0.029 ETH]? Because if AVAX breaks out against Ethereum and starts heading [towards 0.06 ETH], that makes it even more compelling…
It makes it even more compelling than it already is because… you’re talking about a cryptocurrency that’s outperforming Ether, [while] Ether is outperforming Bitcoin. That’s the best thing.”
At time of writing, Avalanche is trading sideways and priced at $84.85, while Ethereum is down 1.49% to $3,069.
Moving on to how AVAX stacks up against Bitcoin (BTC), the analyst notes that it’s been in a systematic uptrend against BTC. Cowen adds that how Avalanche stacks up against Bitcoin and Ethereum is “where the real test comes in.”
“This is one of the better altcoin/Bitcoin charts. It’s more or less just been in a systematic uptrend going all the way back to late 2020. AVAX’s Bitcoin valuation has pretty much been in a systematic uptrend. And from the local bottom, you can see it’s up approximately 1,800%.
Again, that’s against Bitcoin, not the US dollar! That’s pretty impressive considering that Bitcoin has also gone up since late 2020.”
Bitcoin meanwhile has dipped slightly by 2% but remains well above the $40,000 resistance level at $43,049.
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