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01/25 02:40

Ethereum’s Struggle Continues as ETHBTC Ratio Hove

Ethereum’s Struggle Continues as ETHBTC Ratio Hovers Around 2-Month Low: Will ETH Price Break Consolidation?

Ether, the second largest cryptocurrency, has fallen more than 20% against Bitcoin in the last six weeks. With the ETHBTC ratio remaining near a two-month low, sellers are pushing to stabilize the price below $3,400. This pressure has led to a significant drop in an important on-chain metric, indicating potential further declines in its price.

Ethereum’s Decline Might Be Short-Term

The price of Ethereum has been experiencing mixed reactions in the market as both buyers and sellers face liquidations. According to Coinglass, Ethereum saw a total of $35 million in liquidations over the past 24 hours, with $14 million coming from buyers and $21 million from sellers.

Data from IntoTheBlock indicates that Ethereum’s volatility has been decreasing over the last 30 days. A significant drop in volatility could be a negative sign for Ethereum because it suggests less trading activity, which could reduce the chances of the price moving above key resistance levels. Currently, the volatility rate stands at 42.6%.

At the time of publication, the ETH/BTC ratio, which indicates Ether’s value relative to Bitcoin, stands at 0.03194 according to TradingView data. This ratio has decreased by 19% since December 5, when Bitcoin reached $100,000 for the first time.

However, in the previous bull market cycle, the ETH/BTC ratio hit a low of around 0.03 in March 2021 and then climbed to 0.077 within two months. During this time, the price of Ether rose by 110%, reaching $3,817.

As Bitcoin’s adoption now grows, being bearish on Ethereum will be a mistake. Some believe that while many are focused on what US President-elect Donald Trump might do with Bitcoin during his tenure, Ether could also benefit indirectly from Bitcoin’s wider adoption.

Apollo co-founder Thomas Fahrer stated that if the Strategic Bitcoin Reserve is implemented, it could drive Bitcoin’s price up to $1 million this cycle. He also noted that this would be positive for Ether, suggesting that a price target of $4,000 could be achievable.

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