Ethereum Price Against Bitcoin Hits 3-year Low
16 Apr, 2024 ● Coin news
The value of Ether relative to Bitcoin is nearing a three-year low, though various technical indicators suggest a bullish turn may be ahead for the ETH/BTC trading pair.
Since Ethereum's transition to proof-of-stake in September 2022, its price in USD has more than doubled.
However, its performance against Bitcoin paints a contrasting picture, with ETH/BTC down about 33% since the Merge.
Recently, the ETH/BTC ratio has continued to decline, falling over 9% in the past month to a low of 0.048 BTC, a level last seen in May 2021, according to TradingView data.
The recent drop in Ether's price to $3,239 over the past week pushed its Relative Strength Index (RSI) to 44, a significant decrease from 85 on March 11.
This move indicates that Ether is moving out of "overbought" territory, according to the RSI, a momentum indicator that helps assess if an asset is overbought or oversold based on recent price movements.
Ether's price dynamics are critical as it approaches the $3,200 mark.
Crossing this threshold could trigger the liquidation of over $97 million in leveraged short positions, with a further decline to $3,170 potentially causing over $329 million in short liquidations, based on Coinglass data.
Comparatively, Bitcoin has outperformed Ether in USD terms this year, with a 49% increase YTD versus Ether's 36% rise.
Over the last three months, Bitcoin's price surged by 56% while Ether's increased by 28%.
Despite the bleak short-term outlook for ETH/BTC, some market analysts foresee a potential rally.
Andrey Stoychev, the head of Prime Brokerage at Nexo, suggests that the imminent Bitcoin halving and historically low Ether balances on exchanges could boost investor interest in Ether, especially with recent approvals of Bitcoin and Ether ETFs in Hong Kong.
Stoychev believes these factors could lead to a significant rally for Ether, describing the current price levels as an attractive buying opportunity for both short-term and long-term trades.
Moreover, Stoychev points to critical price levels for Ether in USD terms, noting $3,300 as an upper resistance and $3,000 as a lower support level.
The increased attention on Bitcoin, particularly with ETFs and the high transaction costs on the Ethereum network, has somewhat overshadowed Ether, according to Jonathan Caras of Levana perpetual futures protocol.
This situation adds another layer to the complex dynamics influencing Ether's market movements.
Sources:
https://cointelegraph.com/news/eth-price-3-year-lows-bitcoin-ethereum-etf
https://www.tradingview.com/chart/3Z94myyP/?symbol=BINANCE%3AETHBTC
