As ETH/BTC Dumps to Historic Low, Altcoins Likely to Tank Next: Full Details

Data shows that the ETH/BTC rate recently fell below 0.04, marking its lowest level since April 2021. 

This decline occurred despite the approval of ETFs investing in Ethereum, which had been expected to boost ETH’s market position.

Notably, the downward trend in Ethereum’s performance relative to Bitcoin began in September 2022, shortly after Ethereum’s transition to proof-of-stake (PoS). Since then, the ETH/BTC pair has plummeted by 53%.

Observers point to a combination of technical and fundamental factors contributing to Ethereum’s ongoing decline against Bitcoin.

Altcoins Likely to Dump Next

Industry pundit Benjamin Cowen has been one of the prominent voices commenting on the ETH/BTC movement. He observed that large altcoin holders have been critical of Ethereum’s performance.

However, Cowen noted a historical pattern where altcoins often follow Ethereum’s lead when the ETH/BTC pair declines. This pattern suggests that a broader altcoin correction may follow Ethereum’s recent struggles.

A lot of people holding large bags of altcoins are mocking #ETH / #BTC right now.

But history shows that when ETH/BTC crashes, the ALTs will follow. pic.twitter.com/USqLJc2u80

— Benjamin Cowen (@intocryptoverse) September 16, 2024

According to Cowen’s projections, ETH/BTC could be nearing its bottom soon. He suggested that the pair might find support between 0.03 and 0.04 before trending upward in 2025.

While the timing remains uncertain, Cowen believes that a bottom could form as early as this week, with a worst-case scenario pushing the recovery to December. His analysis is based on prior market capitulations, and he remains confident that a reversal is imminent.

Challenges Beyond Technical Breakouts

While Cowen focuses on technical signals, other analysts have pointed to broader market factors affecting Ethereum.

Alex Thorn, Head of Research at Galaxy Digital, emphasized that the situation is more complex than simple price movements. Thorn indicated that Ethereum’s recovery would require a significant shift in the broader narrative surrounding the asset. He argued that technical breakouts alone would not be enough to reverse the downward trend.

David Duong, Global Head of Research at Coinbase, offered additional insights into Ethereum’s price underperformance. He linked the current market structure, particularly in September, to weak seasonality and rising competition from other altcoins.

Moreover, Duong mentioned that crypto enthusiasts are crowding into altcoins other than Ethereum to find better yields.

For a short-term reversal, he suggested that Ethereum would need to integrate more real-world assets (RWAs) and applications with broad public appeal into its ecosystem.