Ethereum prices continued to have a strong downward trend against the US dollar and Bitcoin as linear weekly futures moved into a recession.
Ethereum (Eth) crashed to 0.023 against Bitcoin (BTC), 74% below its lowest level since May 2020, the highest level during the pandemic.
Similarly, the coin fell to $1,770, a low point since October 2023, a low of 57% from its highest level in December last year.
The ongoing Ethereum price crash is due to several factors, such as ongoing ETF spills, The growing competition with the Layer-1 and Layer-2 networks, and the fact that it is no longer the most profitable player in the crypto industry.
Kraken analysts looked at the futures market and identified another reason. In a note to Crypto.News, Derived Director Alexia Theodorou said in a statement to crypto.news that Eth Weekly Linear Futures has retreated for the first time since last August. Meanwhile, Bitcoin futures remain in Contango during this period. The statement said:
“Ether's linear weekly futures took over for the first time since August last year, reflecting an increase in bearish sentiment in the market and a sharp drop of 20% in ETH prices. Bitcoin's future remains in Contango, suggesting the relative strength of BTC amid wider market uncertainty.”
Linear weekly futures are contracts that settle each week and pay in a simple way based on price. By moving towards a setback, it means futures prices are lower than spot prices.
Contango, on the other hand, is the opposite of a setback, with futures prices higher than current levels. This is a sign that the market is predicting the relative strength of Bitcoin in the future.
Ethereum and Bitcoin price analysis
The weekly chart shows ETH/BTC prices have been free falling over the past few years. It's below all moving averages. This is a sign that the bear is in control. He is currently approaching critical support on December 20th with his lowest swing of $0.02350.
The average directional index, a common indicator of trend strength, has moved to 38. Moves above 25 are indications that trends are being strengthened.
Relative strength index and stochastic oscillator moved to the sold level. So the token will likely continue to fall as the seller, the lowest swing for December 2019, targets the next point at $0.0173.
