Ethereum hits 40-month low against BTC – What next for ETH?

• ETH has dropped to its weakest in almost four years against BTC.
• BTC is trading at around $63,000, while ETH is trading at around $2,500 at press time.

Bitcoin [BTC] and Ethereum [ETH] have faced significant price challenges over the past few months, with occasional spikes pushing them to new highs.

However, despite these similarities, recent data shows that ETH has weakened against BTC. Additionally, traders have reacted differently to the launch of ETFs for both assets, favoring BTC over ETH.

Ethereum trades at a 40-month low against Bitcoin

According to recent data from IntoTheBlock, Ethereum is trading at its lowest level against Bitcoin in over 40 months. Analysis of the ETH/BTC pair on Coinbase highlights a clear bearish trend, with ETH trading at 0.04044 BTC, down by 0.25%. 

Source: TradingView

Also, the 50-day moving average (yellow) is below the 200-day moving average (blue), forming a Death Cross—a bearish signal indicating a prolonged downtrend

. Price action shows a steady decline characterized by lower highs and lower lows, reinforcing Ethereum’s ongoing weakness relative to Bitcoin.

Bitcoin strengthens against Ethereum

The BTC/ETH pair on Vantage shows Bitcoin’s recent strength over Ethereum, with the price at 24.7097 ETH, slightly down by 0.04% but still in a strong bullish trend.

The key feature on the chart is the Golden Cross, where the 50-day moving average (yellow) has crossed above the 200-day moving average (blue), signaling a long-term upward trend. 

Source: TradingView

Price action confirms this momentum, with a series of higher highs and higher lows, indicating Bitcoin’s continued dominance over Ethereum.

ETF Flows: Bitcoin Outpaces Ethereum

ETF flows further highlight the contrasting market sentiment between the two assets. According to data from Spot on Chain, Bitcoin ETFs saw an inflow of around $92 million this week, compared to just $2.9 million for Ethereum.

Cumulatively, Bitcoin ETFs recorded over $397 million in total inflows, with positive flows on four out of five trading days. Ethereum ETFs posted a negative total flow of -$26.2 million, with inflows on only two out of five days.

Data from Soso Value further underscores the trend, showing that the cumulative total net flow for US spot Bitcoin ETFs is positive at approximately $17.7 billion.

In contrast, US spot Ethereum ETFs have a negative net flow of about $607 million. This data reflects a clear preference among traders for Bitcoin over Ethereum, not just in price action but also in ETF investments.

Read Ethereum (ETH) Price Prediction 2024-25

BTC continues to outperform ETH

In conclusion, Ethereum has recently lost significant ground to Bitcoin, with bearish trends dominating its trading against BTC. The differing market reactions to their respective ETFs further underscore Bitcoin’s current strength and investor preference.

As traders continue to favor Bitcoin ETFs and the BTC/ETH ratio remains in Bitcoin’s favor, Bitcoin’s bullish momentum could continue while Ethereum faces ongoing challenges in regaining its footing.