Ethereum Faces Downward Pressure as Whale Selling Drives ETH/BTC to 3.5-Year Low

Ethereum, in comparison to Bitcoin, is currently experiencing a period of weakness not seen since early 2021, with the ETH/BTC ratio showing a continuous decline. This ratio specifically measures the value of ETH in terms of Bitcoin, rather than in US dollars. Despite Bitcoin’s 21% decrease from its peak, it has managed to maintain its strength, whereas Ethereum has plummeted by 53% since its high in 2021.

Benjamin Cowen, the founder of ITC Crypto, shared his insight on the ETH/BTC ratio, predicting that it will likely hit a low point between 0.03-0.04 before starting an upward trend in 2025. He mentioned that this downward trend could occur as early as the current week or as late as December, emphasizing that historical patterns suggest an imminent reversal.

Alex Thorn, the Head of Research at Galaxy, highlighted the diminishing Ethereum prices, noting that the ETH/BTC ratio recently traded at a 0.03 level for the first time in three and a half years. Additionally, analyst ‘Master Kenobi’ pointed out the cyclical nature of these patterns, historically observing a decline in the ETH/BTC pair following a Bitcoin halving, with trend reversals typically occurring between 168-224 days post-event. He emphasized that a reversal is anticipated soon, considering the current timeline post-halving.

Galaxy Trading noted on September 16 that the sentiment surrounding Ethereum is currently at its lowest since 2017. They expressed confidence in Ethereum’s potential for a rapid surge once it gains momentum, highlighting the critical support level it is approaching and suggesting that now is not the time to adopt a bearish outlook.

Industry observer Colin Wu reported on September 16 about a significant ETH holder, who has initiated selling their holdings, contributing to the negative sentiment surrounding Ethereum. This selling pressure led to a 6% drop in ETH’s value, pushing it to an intraday low of $2,260. Despite these challenges, Ethereum continues to find support at its current levels, potentially maintaining stability until broader market sentiment improves.

In conclusion, while Ethereum is facing a challenging period with declining prices and negative sentiment, analysts and experts remain optimistic about its long-term prospects once market conditions improve.