The price of Ether (ETH) in Bitcoin (BTC) is approaching its lowest point in three years. However, several important technical indicators are signaling a bullish trend, 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.
Recently, ETH/BTC has continued to decline, losing over 9% in the past month and dropping to 0.048 BTC. According to Tradingview data, the last time the trading pair reached this level was in May 2021.
The price of Ether has fallen by over 11% in the past week to $3,239, causing the relative strength index (RSI) on the daily time frame to drop from 85 to 44. This suggests that Ether is no longer considered “overbought.”
Traders should pay attention to the psychological mark of $3,200, as it could lead to the liquidation of over $97 million worth of leveraged short positions. A further drop to $3,170 could result in the liquidation of over $329 million worth of short leverage across all exchanges, according to Coinglass data.
In terms of USD performance, Ether has underperformed Bitcoin this year. Bitcoin is up 49% year-to-date, while Ether is up 36%. Over the past three months, BTC has risen by 56% compared to ETH’s 28%, according to Tradingview data.
The ETH/BTC ratio last reached 0.048 BTC in May 2021, before Ether’s price declined for two consecutive months. However, there is potential for a rally in Ether’s price, thanks to the approval of Bitcoin and Ether exchange-traded funds (ETFs) in Hong Kong, according to Andrey Stoychev, the head of Prime Brokerage at Nexo.
Stoychev believes that the current price levels of Ether could present a good buying opportunity. He emphasized the importance of Ethereum ETFs and the high transaction costs on the Ethereum network in determining Ether’s future performance.
Jonathan Caras, the head of communication at Levana perpetual futures protocol, stated 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.