The price of Ether (ETH) in Bitcoin (BTC) is approaching its lowest point in three years. However, several important technical indicators are showing bullish signals, and some analysts are predicting potential gains for ETH/BTC in the future.
Since switching to proof-of-stake in September 2022, the price of Ethereum in USD has more than doubled. However, when priced in Bitcoin, the ETH/BTC pair has decreased by approximately 33% since the Merge.
In recent times, ETH/BTC has continued to decline, losing over 9% in the past month, reaching a low of 0.048 BTC. According to Tradingview data, the last time the trading pair was at this level was in May 2021.
The price of Ether has fallen by over 11% in the past week, reaching $3,239. This has caused the relative strength index (RSI) on the daily time frame to drop to 44 from the high of 85 reached on March 11. This suggests that Ether is no longer considered “overbought.”
Traders should pay attention to the psychological mark of $3,200, as a drop below this level would result in the liquidation of over $97 million worth of leveraged short positions. Further downward movement to $3,170 would liquidate over $329 million worth of short leverage across all exchanges, according to Coinglass data.
In terms of performance, Ether has underperformed Bitcoin this year in USD terms. Bitcoin has seen a 49% increase year-to-date (YTD), while Ether has increased by 36%. Over the past three months, BTC has risen by 56%, while ETH has risen by 28%, according to Tradingview data.
The last time the ETH/BTC ratio was at around 0.048 BTC was in May 2021, before Ether experienced two consecutive months of decline. However, some believe that Ether’s price could be preparing for a rally, especially with the approval of Bitcoin and Ether exchange-traded funds (ETFs) in Hong Kong. Andrey Stoychev, the head of Prime Brokerage at Nexo, stated that the current Ether price levels could present a good buying opportunity.
Jonathan Caras, the head of communication at Levana perpetual futures protocol, mentioned that the focus on Bitcoin ETFs and the high transaction costs on the Ethereum network have shifted attention away from Ether. He believes that Ether will need a significant catalyst, such as an Ethereum ETF, to make a comeback.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.