Ethereum Eyes Major Upside Against Nasdaq Amid Bottoming Signal

• ETH/Nasdaq ratio bottoms at 0.11, signaling potential rebound and mean reversion against tech stocks.

• Macro factors like QE restart and cash stimulus may accelerate Ethereum’s outperformance vs Nasdaq.

• SEC’s push for on-chain U.S. equities adds structural support, boosting ETH’s upside potential.

Ethereum (ETH) shows early signs of a strong rebound against the Nasdaq 100, according to analyst Garrett. He notes that the ETH/Nasdaq ratio has repeatedly found a bottom around the 0.11 level, aligning with the RSI approaching the 30 “oversold” zone.

Ethereum seems to have found a stable low point, which could set the stage for it to outperform the Nasdaq in the coming months. Its ratio target sits between 0.16 and 0.22, suggesting a possible 50% to 100% gain if the trend holds.

Since Ethereum and the Nasdaq usually move together, big differences between them probably won’t last long, and prices are likely to move back toward a more normal level.

Source: Garrett

Garrett highlights several macro factors that could accelerate Ethereum’s rise. He points to a potential U.S. quantitative easing restart and direct cash stimulus to households, both of which could fuel asset price gains.

SEC Chair Atkins is encouraging U.S. stocks to move onto Ethereum’s blockchain, giving ETH an extra boost. As a result, these changes could strengthen Ethereum compared to regular stocks, increasing its chances of outperforming them.

Historical Performance and Current Trends

Analysis of the ETH/Nasdaq historic chart shows that the growth phases in ETH had high volatility with sudden rallies, but these were followed by corrections before entering into sideways markets.

Moreover, the moving average highlights that ETH has difficulty in maintaining itself above the medium-term trend line, dipping back after some minor corrections. The most significant levels of support, at which buying interest has helped slow down selling pressure, lie in the region of 0.11.

At the same time, the level of resistance stops the price action from breaking out. During major breakouts or sales, the level of high volume is seen, but not in the period of consolidation. Therefore, there is some level of caution in the market, which waits for the correct trigger to proceed.

The RSI is fairly neutral, reflecting a balanced momentum between buyers and sellers. However, the current bottoming formation also shows that Ethereum may start taking the lead over Nasdaq soon. There are also some compelling macro catalysts that make this situation possible.