Ethereum’s 15-Month Losing Streak vs. Bitcoin: Can ETH Reverse Its Course?

EUNt...wiEe

22 Jan 2024

Introduction:

The price of Ethereum’s native token, Ether (ETH), has been on a downward spiral, trading at a 15-month low compared to Bitcoin (BTC). This trend has been prevalent since Ethereum’s transition to proof-of-stake (PoS). As we move further into 2023, the question arises: will Ethereum continue to weaken in the face of Bitcoin’s dominance? In this article, we delve into the charts to analyze the situation.

Ethereum’s Struggle Against Bitcoin:

The ETH/BTC pair recently plummeted to 0.056 BTC, breaking below its 200-week exponential moving average (200-week EMA), marked by the blue wave on the chart. Historically, this EMA has acted as a strong support level for ETH/BTC bulls. For instance, in July 2022, the pair rebounded by 75% after testing this support. Conversely, in October 2020, it dropped over 25% after losing the same support.
ETH/BTC weekly price chart. Source: TradingView

The Outlook for Ethereum:

Given that the ETH/BTC pair has lost its 200-week EMA support, there are increased downside risks for Ethereum in 2023. The next potential downside target is around its 0.5 Fibonacci level, near 0.051 BTC, which is approximately 9.5% lower than current price levels. However, if Ethereum manages to reclaim the 200-week EMA as support, it may have the potential to rebound toward its 50-week EMA, represented by the red wave, near 0.065 BTC.

Bitcoin’s Dominance:

The persistent weakness of Ethereum compared to Bitcoin is evident in institutional capital flow data. As of October 6, Bitcoin-specific investment funds had attracted $246 million year-to-date, according to CoinShares. In contrast, Ethereum funds have experienced capital outflows of $104 million during the same period.
Net flows into crypto funds (by asset). Source: CoinShares
One of the primary reasons for this discrepancy is the increasing excitement surrounding the possible approval of a spot Bitcoin exchange-traded product (ETF) in the United States. Market analysts suggest that the launch of a spot Bitcoin ETF could attract as much as $600 billion in investment. Additionally, Bitcoin’s fourth halving, scheduled for April 24, 2024, is also seen as a positive factor working in favor of Bitcoin compared to the broader altcoin market.

Conclusion:

Ethereum’s struggle against Bitcoin, marked by a 15-month losing streak, has raised concerns about its future performance. The charts indicate that Ethereum may face further downside risks if it fails to regain its 200-week EMA support. In contrast, the buzz surrounding a potential spot Bitcoin ETF and the anticipation of Bitcoin’s fourth halving have bolstered Bitcoin’s dominance in the crypto market. As 2023 progresses, the crypto community will closely monitor whether Ethereum can reverse its course and regain some of its lost ground against Bitcoin.
If You Like The Content Clap,Follow,Share. And If It Helped You In Your Journey Donate To Support.
Goodbye to 9 to 5 Transform Your Financial Future with Crypto Cash Flow. Copy, Paste, and Profit with Our Cryptocurrency Cash Blueprint And So Many Ways — Start Your Journey Today!
ABSOLUTE BEGINNER (WITHOUT ANY SKILL OR EXPERIENCE) HOW TO MAKE HUGE PROFITS IN A SHORT TIME WITH CRYPTO! I’ll Show You How to Make Huge Money with Totally Automated Crypto Trading Robots And More.

178

Cryptocurrency
Blockchain
Bitcoin
Ethereum
Bitcoin News

178

Follow

Written by Shantanu Gupta

1.94K Followers
·
Writer for
Coinmonks
Crypto, Blockchain, and Metaverse Content Creator | Encouraging You to Become a Profitable Crypto Trader💵🚀 and Explore the Digital Frontier.