Ether traders look further lower as ETH/BTC hits ‘new multi-year lows’
Ether traders are bracing for more price volatility after the ETH/BTC ratio – a popular trading pair among crypto market participants – fell far below its lowest point in three years.
“ETHBTC with new multi-year low of 0.03496,” said Galaxy Head of Research Alex Thorne in a November 5 X post.
Analysts are skeptical of a ‘reversal' on the horizon.
Market analyst Zach Voll believes there is “no upside in sight” for the trading pair.
“Don't let the election distract you from ETHBTC's continued decline to new lows,” Voel added.
Crypto analyst Colin Tox Crypto added, “ETH/BTC is going to drop further.
The Ether (ETH) to Bitcoin (BTC) trading pair is trading at a ratio of approximately 0.035, the lowest since March 2021, according to TradingView data.
The BTC/ETH ratio has decreased by 1.13% in the last 24 hours. Source: TradingView
However, if history repeats itself, it may not stay that way for long. When the pair ended at that level in March 2021, during that low period, in May 2021, the ratio rose to 0.077, with a 120 percent increase in Ether's price, reaching $3,928.
The historical data suggests that some traders expect a strong reversal at this time.
“The coming pump is going to be awesome,” crypto analyst Nayah said in a Nov. 5 post for X.
Further price reductions will spread
However, with the outcome of the US presidential election looming, most traders are expecting an exorbitant rise in the price of Bitcoin at the end of the year. If Ether does not see similar gains, this will further lower the ETH/BTC pair.
For the ETH/BTC ratio to increase, Ether's price action should begin to outperform Bitcoin.
Ether trades at $2,445 at press time.
Meanwhile, on Nov. 5, CryptoQuant contributor Amr Taha indicated that 82,000 ETH, roughly $200.49 million, had flowed into volatile crypto exchanges, a sign he said could lead to “decrease or increase in volatility.”
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“The recent spike in NetFlow could indicate another bullish market move, a price correction, or a bullish move based on trader positioning,” Taha said.
However, analysts are skeptical about how the overall crypto market will play out following the US presidential election.
Bitfinex analysts recently pointed out that a significant increase in volatility is still expected after the conclusion of the election, which could “ignite big moves” or be a warning sign of “a very deep correction for Bitcoin on lower timeframes”.
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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.
