Ethereum price is in trouble as demand for the coin wanes and its ecosystem growth slows. The ETH/BTC pair slumped to a low of 0.02335, its lowest level since May 2020.
It has slumped in the last five consecutive weeks and is down by over 70% from its highest level in 2022. So, what next for the price of Ethereum vs Bitcoin?
ETH/BTC: What Next for Ethereum vs Bitcoin?
The weekly chart shows that the Ethereum vs Bitcoin pair formed a double-top chart pattern at 0.08840 between 2021 and 2022. It then crashed below the neckline of this pattern at 0.04910, setting the stage for more downside.
Ethereum price has remained in a strong bearish trend, and most recently, it moved below the lower side of the descending black channel. That is a sign that bears are now in control.
Further, the coin has remained below the 50-week and 25-week Exponential Moving Averages (EMA).
Therefore, the ETH/BTC pair will likely continue falling. The next point to watch is $0.0160, which is the lowest point in 2020 and 40% below the current level.
Why Ethereum Price Is Crashing
Ethereum price is crashing against Bitcoin and fiat currencies like the US dollar and the euro. This decline happened even as the World Liberty Financial continued accumulating ETH tokens, a stamp of approval from the American president.
The main reason for the ETH/BTC crash is that Bitcoin is doing much better than Ethereum, even in fiat currencies. Bitcoin recently jumped to a record high, while Ethereum has stalled below the key resistance level at $4,000.
Further, some signs spot Ethereum ETFs are not seeing traction in the market. These funds have attracted less than $3 billion in inflows, while Bitcoin ETFs are swimming in money after raising over $40 billion in inflows.
Investors likely have shrugged spot ETH ETFs because Gary Gensler ensured these funds did not have a staking feature. Data shows that staking Ether ETFs now yield about 3.5%.
This means that investors prefer staking the coin instead of investing in a zero-yielding fund. The total amount staked in Ethereum is worth $92 billion.
Ethereum is falling because it is no longer the only game in town, as more networks have overtaken it in key areas. Tron is now the biggest handler of Tether because of its low transaction costs.
Also, Ethereum has been passed by networks like Circle, Jito, and Solana in fees this year.
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