Trader: Ethereum is More Vulnerable Than Bitcoin to a Major Correction

Peter Brandt, a highly experienced trader in the FX and cryptocurrency market, said in his 43 years of trading, he has not seen any asset that experienced a major trend reversal after an 80 percent correction within two weeks of stability.

Alex Kruger, a prominent economist and trader, said earlier this week that Ether is more vulnerable to a correction than Bitcoin.

If Bitcoin and the rest of the cryptocurrency market experience another correction in the mid-term to establish a strong foundation for the next rally, Kruger said that Ether will be more vulnerable to sell pressure than Bitcoin.

"ETH would remain more vulnerable than BTC for three reasons: twice as much as selling pressure from natural sellers relative to market cap , lower odds of an ETF, lots of competitors versus no competitors."

As a proof-of-work payment-focused blockchain network, Bitcoin has absolute dominance over the market.

While the Chicago Board Options Exchange has hinted the possibility of the launch of the Ethereum futures market, an exchange-traded fund around Ether is highly unlikely in the near future.

The US Securities and Exchange Commission has previously emphasized in its decision to deny nine ETFs from ProShares and Direxion that it does not intend to allow any ETF based on the futures market in the short-term, at least until the Bitcoin futures market increases significantly in size to have a profound impact on the global cryptocurrency market.

"Aggregated: $18.5 million ETH, $39.5 million BTC ; Market cap: $30 billion ETH, $120 billion BTC; Percentage of market cap: 0.06% ETH, 0.03% BTC. Twice as much relative supply hitting the market for ETH than for BTC.".

In an interview on Aug. 24 with Ran Neuner, leading digital asset exchange ShapeShift CEO Erik Voorhees stated that while the bear market is still in play, the worst part of the correction has come to an end.

If Bitcoin and the rest of the market can sustain their momentum throughout September in the $7,000 price range and at $250 billion in market valuation, then it would be possible for the market to initiate a mid-term recovery without suffering another major correction.