Ethereum, renowned as "the world’s computer," has seen an 18% decline against Bitcoin in the past six weeks. Despite this downturn, experts caution against dismissing this digital asset prematurely.

The recent slide shouldn't be seen as a terminal issue. As Merlijn The Trader told his 378,200 X followers on January 16, being bearish on Ethereum now could be a strategic misstep.

"The momentum is undeniable," he noted. "The next move is coming." Currently, the ETH/BTC ratio, demonstrating Ether’s relative strength to Bitcoin, stands at 0.0332, as per TradingView data. It reflects a 17.5% decrease since December 5, when Bitcoin first surged past $100,000.

Examining historical trends, the ETH/BTC ratio reached a low of 0.03 during the previous bull market cycle in March 2021, only to climb to 0.077 two months afterward. During this period, Ether’s value ascended by 110%, peaking at $3,817.

Some analysts suggest that Ether might gain indirectly from Bitcoin’s broader adoption. As Thomas Fahrer, Apollo co-founder, mentioned in a January 16 X post, an implementation of the Strategic Bitcoin Reserve post-Trump’s inauguration could propel Bitcoin toward $1 million. This scenario might also elevate Ether’s price to $4,000.

Notably, Ether’s highest level in the last year was $4,066 in March. Although it briefly revisited the $4,000 mark in December, it couldn't sustain this critical support, eventually dropping below $3,500 and currently trading at $3,365. Meanwhile, Bitcoin has remained above the $100,000 benchmark, trading at $100,947 after fluctuating around this level since December.

Concerns surrounding the Ethereum Merge continue to resonate within the market. Financial analyst Rajat Soni remarked on January 16 that post-Merge, Ethereum was meant to become deflationary. However, the supply has nearly returned to its pre-Merge state.

Investors should remain cautious. As with all market activities, thorough research and risk assessment are vital. This piece offers no investment advice or endorsements.