ETH Price Nears 3-Year Low Against Bitcoin – Will Ethereum ETF Stem The Wave?
The price of Ether (ETH) in Bitcoin (BTC) is at a three-year low. However, several key technical indicators are blinking, and some analysts are expecting potential gains for ETH/BTC going forward.
After the merger, Ethereum fell by 33 percent against Bitcoin
Ethereum's price has more than doubled its value in US dollars since it was converted to stock proof in September 2022. However, the picture is very different when trading in Bitcoin, as the ETH/BTC pair is down approximately 33% since the merger.
Recently, ETH/BTC has continued its decline, losing over 9% in the past month to 0.048 BTC. The trading pair's last all-time low was in May 2021, according to Tradingview data.
Ether price fell more than 11% last week to $3,239, pushing the daily timeframe Relative Strength Index (RSI) to 44, down from 85 on March 11. .
RSI is a popular momentum indicator used to measure whether an asset is oversold or overbought based on the magnitude of recent price changes.
Traders should keep an eye on the $3,200 psychological mark, which will wipe out more than $97 million of active short positions. A drop to $3,170 would eliminate more than $329 million worth of short interest across all exchanges, Coinglass data shows.
The price of Ether has underperformed the price of Bitcoin in US dollars this year. Bitcoin is up 49% year-to-date (YTD), while Ether is up 36%. Over the past three months, BTC has increased by 56% while ETH has increased by 28%, Tradingview data shows.
Related: ‘China to start auction' — Will Hong Kong's Bitcoin ETFs fuel the halving rally?
Is it a good time to buy ETH?
The ETH/BTC ratio was last seen at around 0.048 BTC in early May 2021, before the price of ETH fell 2.5% in May and fell more than 15% to $2,276 by the end of June 2021.
Thanks to the approval of Bitcoin and Ether exchange-traded funds (ETFs) in Hong Kong, the price of ether could be set for a rally, said Andrey Stoychev, head of prime brokerage at Nexo. He told Cointelegraph.
“Bitcoin's all-important block reward will halve within days, just as the balance on Ether exchanges is at multi-year lows. That setup alone could invite more investor exposure to ETH in anticipation of big news from Hong Kong — namely the approval of local Bitcoin- and Ether-based ETFs.” It could be argued that Ether could make a sharp, idiosyncratic hack in light of this market situation.
Current Ether price levels may represent a good buying opportunity, Stoychev said.
“Even at current rates, market participants can buy ETH for both a short-term play, as well as a long-term trade taking into account all possible developments. That said, the key levels seen in ETH/USD for now will be $3,300 at the top and $3,000 at the bottom.” .
Jonathan Karas, Head of Communications at Levana's Forever Future Protocol, said that the focus on Bitcoin ETFs, along with the high transaction costs on the Ethereum network, has taken the focus off of Ether.
Karas added that Ether would need a significant boost, such as an Ethereum ETF, to bounce back. He told Cointelegraph.
“Ethereum needs support from its own ETF or other means of promoting institutional adoption to reverse its downward relative trend.”
Related: How High Can Bitcoin Go? New BTC price forecast shows cycle high at $180k
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
