Ethereum falls to 42-month lows with Bitcoin – is the bottom near?

Ethereum's native token Ether (ETH) continues to lose strength against Bitcoin (BTC), with the ETH/BTC pair hitting 0.0365 BTC since October 25, the lowest level since April 2021.

The launch of low-cost exchange-traded funds and increased competition with smart contracts, rival Solana, have dampened traders' interest in Ethereum in 2024.

These factors may continue to push ETH/BTC lower in the coming months, with technical indicators hinting at more of the same.

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ETH price may see another 15% drop.

Ether's continued price decline is occurring in what appears to be a breakout phase of an inverse-cap-and-hand (IC&H) pattern.

It starts with an uptrend and then forms an inverted U-shaped “cup”-like circular top. After the inversion cup, there was a small and temporary rebound (handle), creating a consolidation period that moved slightly upward or sideways.

Related: Ethereum ICO Participant Drops 3,000 ETH for $7.6M in Cash

An IC&H pattern is typically resolved when the price breaks below the neckline support and falls to a level equal to the high distance between the top of the cup and the neckline.

As of October 25th, ETH/BTC entered the same breakout level, down more than 15% from current prices, eyeing its low target of 0.0319 BTC.

Ethereum bulls are hoping for a 25%-50% recovery

Ethereum may enter a new bull cycle against Bitcoin after dropping to the IC&H pattern target, which closely aligns with the bear setup shared by Chartered Market Technician and former fund manager Axel Kibar.

Kibar expects the ETH/BTC pair to drop to 0.029 BTC, which he calls a key “tipping point” following a 200% rally to its 2021 support test.

ETH/BTC dropped to historic lows on October 25 due to the pair's monthly Relative Strength Index (RSI), which is likely to recover from the 0.029-0.0319 BTC range.

At around 33, the ETH/BTC monthly RSI is just two points above the oversold 30 threshold. The pair's potential dip in the coming months suggests the monthly RSI may be “oversold” for the first time in history, suggesting the market may be overextended. The downside.

A fall in the RSI into the oversold territory can lead to seller fatigue, which increases the possibility of a bullish reversal. This is because “oversold” RSI levels are seen as buying opportunities as they suggest that the asset may be undervalued and may be due for a decline.

If a bullish reversal occurs, ETH/BTC may target the 0.618 Fibonacci retracement level around 0.0482 BTC. Additionally, the 50-month exponential moving average (50-month EMA, red wave), near 0.0549 BTC, serves as another primary upside target.

In other words, ETH/BTC can recover by 25%–50% from its current price level by 2025.

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.