Ethereum’s ETH/BTC Ratio Hits 5-Year Low: Will ETH Rebound?
Ethereum’s ETH/BTC ratio hits a 5-year low as it struggles under $2,000 amidst Bitcoin’s surge to $100,000. Competition from other blockchains affects its market position, while the absence of a prominent supporter like Bitcoin’s Michael Saylor weakens buying momentum. Despite these challenges, some signs show a potential short-term recovery as critical support levels hold.
Ethereum’s ETH/BTC ratio has dipped to its lowest level in five years, reflecting the cryptocurrency’s struggle to maintain traction in a changing market. Currently, Ethereum hovers below $2,000, even plummeting to $1,400 recently. In contrast, Bitcoin has surged to an impressive $100,000, pulling the ETH/BTC ratio further down.
Competitors are emerging as a significant threat to Ethereum. Newer blockchain technologies are delivering faster transaction speeds and lower fees, which gradually erode Ethereum’s dominance in the smart contract arena. Without a clear edge in terms of operational efficiency or transaction costs, Ethereum is facing an uphill battle to maintain its market position—hence the declining ETH/BTC ratio.
The absence of a notable supporter like Bitcoin’s Michael Saylor, who has greatly enhanced Bitcoin’s visibility and demand, puts Ethereum at a disadvantage. This lack of a prominent advocate makes it more susceptible to fluctuations in buying enthusiasm or momentum. In tandem with this, the current global macroeconomic landscape appears to favour Bitcoin, viewed as a safe haven amid global turbulence. Meanwhile, Ethereum is often characterised as a more speculative asset, typically favoured during periods of market calm.
However, not all hope is lost for Ethereum. The cryptocurrency is displaying technical indicators that suggest a potential short-term recovery. The ETH/USD price currently stands at $1,811, having rebounded from critical support at $1,783. It also reclaimed its 50-period exponential moving average (EMA) on the 2-hour chart, suggesting buyer interest at these levels could push prices upward.
For those unfamiliar, a trendline defense occurs when buyers engage at rising support levels, actively preventing further price declines. Presently, key levels to watch include:
– Buy Breakout: Above $1,857
– Upside Targets: $1,908 and $1,950
– Support to Monitor: $1,783 and $1,757
– Stop-Loss: Set below $1,757
Investors are advised to exercise caution—waiting for a definitive breakout above $1,857 before considering entry is prudent, as near resistance zones often lead to misleading price movements. Stay updated with Forex signals and economic events to better inform trading decisions.
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