Is ETHBTC about to reclaim its pre-merge high?

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The 2022 high for Ethereum ( $2,321.37 ) denominated in Bitcoin ( $76,260.00 ) was 0.084BTC just before The Merge, and a recent rally has investors considering if Ethereum ( $2,321.37 ) could regain its pre-merge high.

Ethereum ( $2,321.37 ) made strong gains against Bitcoin ( $76,260.00 ) ahead of The Merge on Sept. 15. However, the second-largest cryptocurrency by market cap failed to reach the all-time high set back in 2017.

Ethereum ( $2,321.37 ) reached 0.12BTC around June 2017 and 0.1BTC in 2018. Since then, Ethereum ( $2,321.37 ) has struggled to stay above the key resistance of 0.075BTC, according to CryptoSlate’s analysis of Glassnode data.

Ethereum ( $2,321.37 ) dropped as low as 0.018BTC during the bear market of 2019. Yet, this cycle Ethereum ( $2,321.37 ) has performed far better, retesting the 0.075BTC resistance in November 2021 and again following The Merge in September.

Following a retracement at the start of October, Ethereum ( $2,321.37 ) is once again gaining pace on Bitcoin ( $76,260.00 ) — currently sitting around the 0.075BTC mark.

There are several possible catalysts for Ethereum ( $2,321.37 ) ’s resurgence against Bitcoin ( $76,260.00 ) . While there has been limited innovation in the core technology behind Bitcoin ( $76,260.00 ) , Ethereum ( $2,321.37 ) has seen a major overhaul of its network.

Ethereum ( $2,321.37 ) experienced its first deflationary month following The Merge as supply declined for the first time in its history. At its current trajectory, the total supply of Ethereum ( $2,321.37 ) will decrease by 0.07% over the next 365 days. A reduction in total supply is often viewed as a bullish indicator of future price action.

Several factors could alter Ethereum ( $2,321.37 ) ’s projected supply growth, such as the amount of ETH locked into staking and the amount of ETH burned from network transactions. Data related to the supply and burn of Ethereum ( $2,321.37 ) can be found on ultrasound.money.

Further bullish outlook for Ethereum ( $2,321.37 ) during the fourth quarter is further supported by reviewing options open interest. There is an overwhelming number of calls for $3,000 on derivatives exchange Deribit expiring on Dec, 30.

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