Ethereum’s Potential Bottom as ETH/BTC Pair Falls Below 0.04
ETH/BTC Pair Hits New Low: Is Ethereum in Trouble?
Ethereum (ETH) is currently facing the consequences of Bitcoin’s (BTC) recent dominance surge, leading to a decline in the ETH/BTC pair below $0.04, raising concerns about Ethereum’s future trajectory.
The dip in the ETH/BTC pair has shed light on Ethereum’s prolonged struggle against Bitcoin, signaling a delay in the anticipated altcoin season. The pair hit a 24-hour low of $0.0387, marking its lowest level since April 2021.
Analysts interpret this extended divergence in the ETH/BTC pair as a potential precursor to a significant market shift. Meanwhile, Bitcoin’s dominance has reached a year-to-date high of 58.07%, with signs of a possible reversal indicated by a divergence pattern. If this pivot materializes, it could redirect liquidity towards altcoins, benefiting Ethereum.
Despite the recent downside in the ETH/BTC pair, Ethereum has not witnessed substantial outflows. Exchange reserves, which hit a yearly low of 18.52 million coins on September 11, rebounded to 18.79 million ETH, reflecting renewed sell pressure over the weekend.
At the time of writing, Ethereum was trading at $2,298, almost unchanged from the previous week’s opening price, erasing its weekly gains. On-chain activity analysis revealed a decrease in active addresses to 262,786, the lowest since mid-January 2024, reflecting market uncertainty ahead of critical decisions.
Moreover, whale addresses holding Ethereum increased from 58.44 million coins in August to 58.47 million coins in September, while retail addresses remained relatively stable. This uptick suggests that investors, both large and small, are capitalizing on discounted Ethereum prices.
The current market dynamics indicate a pivotal phase for Ethereum, with the ETH/BTC pair’s performance serving as a barometer of Ethereum’s resilience against Bitcoin’s dominance. As the crypto market navigates through these turbulent waters, Ethereum’s ability to weather the storm and potentially rebound remains a focal point for investors and analysts alike.
