Ether Lee’s indigenous token token ether (ETH) has fallen to many years of Bitcoin (BTC), and analysts have urged to predict additional reductions in the next few weeks.
If a knife warning falls, the risk of selling increases
On March 13, ETH/BTC, which tracks Ether’s strength against Bitcoin, has fallen more than 1.50% to reach $ 0.022 at the lowest level since May 2020.
ETH’s descent is part of the decline of many years that started when the record of $ 0.156 was set in June 2017. Since then, more than 85%have plummeted, and weaknesses to Bitcoin in ether have been increasing.
Meanwhile, the relative strength index (RSI), a momentum indicator used to measure whether the assets were overduted on the two -week ETH/BTC chart, fell to 23.32 records.
ETH/BTC 2 -week price chart. Source: TradingView
In general, when RSI drops to less than 30, it will potentially lead to price rebound by displaying bold conditions.
In the case of Ether Leeum, however, RSI continues to plunge even after two months of erasing the excess, suggesting that the fall of ETH is still accelerating rather than stabilizing.
Encryption analyst Alessandro ottaviani describes the situation as a “falling knife” scenario, which is used to explain assets that experience fast and steep decline, and often that the buyer does not step on it too quickly.
A fallen knife means that if you try to catch an asset with a recognized low asset, an additional loss may occur if the down trend persists.
In order to inform the potential reversal of Ether Lee, the trader will watch the RSI stabilization and regain the major resistance levels. This is restricted in December 2020 with a limited attempt to decline ETH/BTC, which begins with a rebound of 0.022 BTC, resulting in a 300%rally.
ETH/BTC weekly price chart. Source: TradingView
If a rebound occurs, the ETH/BTC pairs can be held at 0.382 Fibonacci Retression line at about 0.038 BTC, which matches the 50 -week index moving average (50 weeks EMA).
Until then, the technical outlook suggests that ETH/BTC may be trapped in a knife trajectory falling knife trajectory and that the following potential drops may remain at the historical support level within the 0.020-0.016 BTC range.
ETH/BTC 2 -week price chart. Source: TradingView
The lowest point in this range is about 30% lower than the current price level.
ETH/BTC foundation supports the weak prospects.
The prospect of further reduction on ether’s bitcoin is rooted in factors other than technical analysis.
For example, Ethereum is currently facing a strong competition with rival layer -1 block chain, Solana (SOL).
Related: ‘The worst work in Ether Lee -Riium -160% increase in Bitcoin after the merger
Vaneck pointed out that Solana’s distributed exchanges surpassed Ether Leeum even while the trading activities, which were meme, fell sharply. Solana’s amount, on the other hand, has continued to increase in recent months, which is consistent with the decrease in the amount of Etherrium.
Solana vs. Ethereum DEX volume. Source: Vaneck
In addition, the launch of SPOT BITCOIN ETFS has fundamentally changed the traditional crypto market cycle used to benefit Ethereum and other altcoins.
Historically, after Bitcoin surged after death, capital rotated to Altcoins, causing “altseason”, which surpasses BTC by ETH and other assets. However, in 2024, $ 12.9 billion in Bitcoin ETFs, which was interrupted, resulting in a lower liquidity of the larger Altcoin market, including Ether Leeum.
Bitcoin ruling index weekly price chart. Source: TradingView
Another factor is Ether Lee’s sales pressure.
Recently, BYbit Hack has led to considerable ethical liquidation, some of which have been washed through distributed platforms such as Thorchain. This absorbed selling is still diped through the market to depress the relative value of ETH.
This article does not include investment advice or recommendation. All investment and trading measures include risks, and the reader must do his own research when making a decision.