Data from TradingView on October 25 indicated that the ETH/BTC ratio had fallen briefly below 0.037. The rate was the lowest the pair had reached since April 2021, marking a 30-month low. The ratio, which hit 0.03687 then, was approximately 2.7% lower in the past 24 hours.
The ETH/BTC ratio is a significant indicator in the crypto markets, helping investors make important shorting decisions. The Ethereum rate relative to Bitcoin describes the price of 1 ETH in BTC. The ratio also translates to how much BTC one can purchase using 1 ETH at the coins’ current prices.
Since mid-September, the ETH/BTC rate has fluctuated, with a continuous drop in the last four days. So far, the pair saw a 3.36% drop yesterday, reaching 0.03763. According to Coinmarketcap data, the pair dropped significantly today before returning to 0.03721 at the time of writing. Despite the rebound, the ratio remains 1.12% down in the past 24 hours.
Ethereum’s price has decreased today to $2,502, dropping from October 21’s $2,763.81. The October 21 highs marked a 2-month high, with the current price being approximately 9% lower. Ethereum’s price has been struggling to stay above the $2,500 mark today, with the day’s lows reaching $2,475.95. On the other hand, Bitcoin’s highest price today was $68,798, while the lowest was $67,234.4.
Analyst Benjamin Cowen predicts that ETH/BTC will bottom
It’s almost over.
I think #ETH / #BTC will likely bottom between 0.03-0.04 and then trend up in 2025.
It could bottom as early as this week or as late as December
Based on prior capitulations, I think it will happen sooner rather than later
Will make a video about it tomorrow https://t.co/rwqj5u4n8A pic.twitter.com/lc7iMruoqf
— Benjamin Cowen (@intocryptoverse) September 16, 2024
According to well-known crypto analyst Benjamin Cowen, the ETH/BTC pair will bottom before rebounding in 2025. The prediction, which Cowen made on September 16, revealed that the pair could plunge to a level between 0.03 and 0.04. Cowen also predicted that the pair would drop anytime between September and December.
The analyst made a similar prediction in June 2023, mentioning that the ETH/BTC pair was about to collapse. The pair’s decline continued until October despite many X users disagreeing with the outlook.
Another analyst, Master Kenobi, had an outlook for the ETH/BTC pair that mirrored Cowen, confirming that the pair went through a similar cycle after the Bitcoin halving. Kenobi highlighted the cycle in 2017 and 2021 after the 2016 and 2020 bitcoin halving events, respectively. The analyst also mentioned the altcoin bull market that followed after the ETH/BTC rate drop.
BTC dominance is increasing as the pair drops, recently crossing 53%. A recent analysis speculated that BTC’s dominance might continue upward. The analysis forecasted that the top crypto’s dominance might also reach its highest soon.
Ethereum underperforms in 2024
Ethereum has been underwhelming this year despite multiple upgrades and the March bull run. ETH saw its highest price this year after the Dencun upgrade, pushing the crypto to $4093. However, the coin has only seen a little over an 11% boost this year.
The coin has also received negative sentiment, increasing the FUD surrounding it. Ethereum’s rivals, such as Solana, are experiencing positive growth. A major indicator is the increasing SOL/ETH ratio as the ETH/BTC ratio continues to drop.
Despite its upgrades, the Ethereum blockchain has received an underwhelming number of transactions. Many investors are leveraging Ethereum Layer 2s instead of the main chain. Additionally, Ether has become inflationary instead of deflationary.
Industry expert Camila Russo suggested that Ethereum’s leadership should investigate the chain’s problems instead of blaming the community for ETH’s underperformance. Russo said that it would ‘take a degree of arrogance’ to ignore the issues associated with the Ethereum blockchain.
Source: https://www.cryptopolitan.com/eth-btc-rate-drops-below-0-037/