Ethereum at Critical Level: Could ETH/BTC See a Reversal?

Ethereum at Critical Level- ETH/BTC Plunges to Multi-Year Low

Ethereum at Critical Level– Ethereum’s native token, Ether (ETH), has recently reached its lowest point in years against Bitcoin (BTC), sparking concerns among analysts about potential further declines.

On March 13, the ETH/BTC pair, which tracks Ether’s strength against Bitcoin, dropped over 1.50%, hitting $0.022—its lowest level since May 2020. This marks an ongoing downtrend that began after ETH/BTC peaked at $0.156 in June 2017. Since then, ETH has lost more than 85% of its value compared to Bitcoin.

Technical Indicators Signal Weakness

The relative strength index (RSI) for ETH/BTC has fallen to a record low of 23.32. Typically, an RSI below 30 indicates oversold conditions and could suggest a potential rebound. However, ETH’s RSI has continued to drop even after reaching oversold territory, indicating that its downtrend may be intensifying rather than stabilizing.

Crypto analyst Alessandro Ottaviani referred to the current situation as a “falling knife,” meaning that any attempt to buy at a perceived low could result in further losses if the trend persists.

For a potential reversal, traders are keeping an eye on the 0.022 BTC level, which previously acted as support during ETH’s rally in December 2020. A bounce from this level could pave the way for a rebound toward the 0.038 BTC mark, aligning with the 50-week exponential moving average (EMA).

Fundamental Factors Driving ETH’s Decline

Ethereum’s struggles against Bitcoin are also influenced by broader market dynamics. Ethereum faces increasing competition from blockchains like Solana (SOL), which has seen higher decentralized exchange volumes than Ethereum recently. Additionally, the launch of Bitcoin ETFs has reshaped the market, diverting liquidity away from altcoins like Ethereum.

With these factors in play, ETH’s downward trajectory could continue in the coming weeks, raising concerns about its relative value in the broader crypto market.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.