Ethereum Price Analysis: ETH Struggles Against Bitcoin as Market Conditions Shift

Ethereum Price Analysis – ETH/BTC Pair Hits Lowest Level Since April 2021: What’s Next for Ethereum?

Ethereum Price Analysis – Ethereum’s native token, Ether (ETH), is experiencing significant challenges as it continues to lose ground against Bitcoin (BTC). As of October 25, the ETH/BTC trading pair is hovering around 0.0365 BTC, marking its lowest level since April 2021. Factors such as disappointing exchange-traded fund (ETF) launches and intensified competition from smart contract rival Solana have dampened traders’ enthusiasm for Ethereum in 2024.

Technical Indicators Suggest Further Decline

The ongoing price declines of Ether are now entering what appears to be a breakdown stage of its current inverse cup-and-handle (IC&H) pattern. This pattern typically begins with an upward trend that peaks, forming a rounded top similar to an upside-down “U.” After the peak, there is a temporary rebound, referred to as the “handle,” leading into a consolidation period that trends slightly upward or sideways.

Currently, the ETH/BTC pair is poised to break below its neckline support, targeting a potential drop to approximately 0.0319 BTC, representing a decline of over 15% from current prices.

Ethereum Bulls Eyeing Rebound Potential

Despite the bearish sentiment, Ethereum bulls are hopeful for a new bull cycle versus Bitcoin if prices drop to the target of the IC&H pattern. Market technician Aksel Kibar forecasts that the ETH/BTC pair may decline toward 0.029 BTC, a crucial “inflection point.” This level previously acted as support in 2021, which was followed by a 200% rally.

The potential for a rebound from the 0.029–0.0319 BTC range is further supported by the pair’s monthly Relative Strength Index (RSI), which has recently hit a historical low. As of October 25, the monthly RSI stands at around 33, just two points above the oversold threshold of 30. If the RSI dips into oversold territory, it could signal seller exhaustion and increase the chances of a bullish reversal, suggesting that the asset may be undervalued and ripe for a bounce.

Fibonacci Levels and Future Price Targets

If a bullish reversal does occur, ETH/BTC could aim for its 0.618 Fibonacci retracement level at around 0.0482 BTC. Furthermore, the 50-month exponential moving average (50-month EMA), situated near 0.0549 BTC, would serve as another critical upside target. This suggests that ETH/BTC could recover by 25%–50% in 2025 when assessed from its current price levels.