Ethereum Nears Three-Year Low Against Bitcoin; Experts Predict Potential Rally
Summary:
Ether (ETH), valued in Bitcoin (BTC), is reaching a three-year low, with Ethereum dropping 33% since the 2022 switch to proof-of-stake. However, pivotal technical indicators suggest a bullish shift might be on the horizon for ETH. Despite outperforming Bitcoin in USD terms this year, experts believe favorable conditions, including the approval of Bitcoin and Ether ETFs in Hong Kong, could reinforce gains in Ether. Current rates are considered suitable for both short and longer-term investments in Ether, with the presence of an ETH ETF considered a potential recovery trigger.
Ether (ETH), when valued in Bitcoin (BTC), is approaching its lowest level in three years. Despite this, many key technical metrics point towards a possible bullish shift, leading to speculation about future ETH/BTC gains. Since Ethereum adopted a proof-of-stake model in September 2022, the fiat currency value has more than doubled. However, when priced in BTC, Ethereum has dropped by roughly 33% since this shift, known as the Merge. In fact, over the last month, ETH/BTC has fallen an additional 9%, bringing the trading pair to 0.048 BTC, the lowest since May 2021, as per Tradingview data.
The price of Ether fell by 11% last week to $3,239, reducing its relative strength index (RSI) from 85 on March 11 to 44. This change means Ether is no longer considered "overbought" according to this widely used momentum indicator. Market watchers should be keen on the $3,200 mark, a pivotal point that could trigger a liquidation of over $97 million in leveraged short positions.
As for its performance against the U.S. dollar, Ether has lagged behind Bitcoin so far this year. Bitcoin witnessed a year-to-date hike of 49%, while Ether saw a lesser increase at 36%. Over the last three months, BTC appreciated by 56%, while ETH only increased by 28%.
However, experts suggest that the current ratio, which is similar to the one experienced at the start of May 2021, might hint at a potential rally for Ether. This optimism is partly due to the sanctioning of Bitcoin and Ether exchange-traded funds (ETFs) in Hong Kong. Andrey Stoychev, head of Prime Brokerage at Nexo, believes the green-lighting of ETFs and an upcoming landmark in Bitcoin's journey could lead to additional investment in Ether.
Stoychev suggests that the current Ether rates could prompt market participants to invest in ETH for both short-term and longer-term gains. However, he warns investors to monitor the $3,300 and $3,000 markers. As per Jonathan Caras, the head of communication at Levana perpetual futures protocol, the hype surrounding Bitcoin ETFs coupled with Ethereum's high transaction costs has left Ether in the shadows. He emphasized that a major trigger, such as an Ethereum ETF, would be needed for Ether to outshine its current performance.
Published At
4/15/2024 5:49:23 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.