The price of Ether (ETH) in Bitcoin (BTC) is approaching its lowest point in three years, but there are signs that indicate a potential upward trend for ETH/BTC. Since transitioning to proof-of-stake in September 2022, the price of Ethereum in USD terms has more than doubled. However, when priced in Bitcoin, the ETH/BTC pair has seen a decline of approximately 33% since the Merge.
In recent times, the ETH/BTC pair has continued to decline, experiencing a loss of over 9% in the past month and dropping to 0.048 BTC. According to Tradingview data, the last time the trading pair was at this level was in May 2021.
The price of Ether has fallen by over 11% in the past week, reaching $3,239. This has caused the relative strength index (RSI) to drop to 44 on the daily time frame, down from the 85 it reached on March 11. The RSI is a popular momentum indicator used to determine whether an asset is overbought or oversold based on recent price changes.
Traders should pay attention to the psychological mark of $3,200, as a drop below this level could result in the liquidation of over $97 million worth of leveraged short positions. Further downward movement to $3,170 would liquidate over $329 million worth of short leverage across all exchanges, according to Coinglass data.
In terms of performance against Bitcoin, Ether has underperformed this year. While Bitcoin has seen a 49% increase year-to-date, Ether has only risen by 36%. Over the past three months, Bitcoin has risen by 56% compared to Ether’s 28% rise, according to Tradingview data.
Despite the current decline, there is potential for Ether to rally. The approval of Bitcoin and Ether exchange-traded funds (ETFs) in Hong Kong could be a catalyst for this rally, according to Andrey Stoychev, the head of Prime Brokerage at Nexo. Stoychev believes that the current price levels of Ether present a good buying opportunity.
Jonathan Caras, the head of communication at Levana perpetual futures protocol, suggests that the focus on Bitcoin ETFs and the high transaction costs on the Ethereum network have diverted attention away from Ether. Caras believes that for Ether to make a comeback, it will require a significant catalyst such as an Ethereum ETF.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment or trading decisions.