Ethereum (ETH) continues to face tough times, particularly in its price performance against Bitcoin (BTC). With Bitcoin’s dominance climbing to 58%, Ethereum has dropped to a new 42-month low, leaving many to question whether this marks a local bottom or if further losses are on the horizon.
ETH/BTC Hits New 42-Month Low
Ether’s price against Bitcoin has plummeted to levels not seen since April 2021, with the ETH/BTC ratio now at 0.03. Alex Thorn, head of research at Galaxy, highlighted this worrying trend in a recent social media post, noting a 53% decline since Ethereum’s major network upgrade, the Merge, in September 2022. He posed the question, “What stops this train?” suggesting that more downside could follow.
BTC/USD downtrend. Source: Alex Thorn
Similarly, investor and mathematician Fred Krueger has pointed out Ether’s vulnerability, suggesting that ETH is on the “edge of collapse” against Bitcoin. He also highlighted the uneven performance of cryptocurrency ETFs, with Bitcoin ETFs seeing strong inflows while Ether ETFs have struggled.
Ether ETF Outflows Continue
One of the factors contributing to Ether’s poor price performance is the persistent outflows from Ether ETFs. Since their launch, Ether ETFs in the United States have experienced $581 million in net negative outflows, with Grayscale’s Ether ETF accounting for $2.7 billion. By comparison, Bitcoin ETFs have been much more successful, with 75% of new investments flowing into Bitcoin.
Is Ether’s Bottom Near?
Despite the current bearish trend, some analysts believe a recovery could be on the horizon for Ether. Crypto trader Anbessa suggests that Ethereum’s correction against Bitcoin may be nearing its bottom, pointing to key Fibonacci levels as potential support.
Source: Fred Krueger
Additionally, crypto investor Hedgex noted that ETH/BTC’s relative strength index (RSI) has only been this oversold five times in Ethereum’s history, with each instance followed by a significant price rally.
Whether Ether can bounce back from these lows remains uncertain, but analysts are watching closely.
