As Ethereum continues to underperform against Bitcoin, ETH/BTC has fallen below a three-year low, with Michael van de Poppe highlighting a potential support zone.
Ethereum's exchange rate against Bitcoin has experienced a significant decline, recently falling below 0.037 on October 25th, the lowest level since April 15th, 2021. data shows that the ETH/BTC rate has fallen by 30% since July 1st of this year, reflecting the significant underperformance of Ethereum compared to Bitcoin.
Analysis reveals key support levels
Michaël van de Poppe, CEO of MN Consultancy, observed this bearish trend in the ETH/BTC pair and called for Ethereum to capitulate. His analysis points to a potential support zone at the 0.035BTC level, where buying interest could emerge.
Surrender $ETH!
The next support level is the 0.035 area.
Let’s see what the market brings if Ethereum reaches that level. pic.twitter.com/kU5bseRckY
— Michael van de Poppe (@CryptoMichNL) October 25, 2024
A smaller support zone around the 0.038 BTC level could provide temporary relief before Ethereum tests a major support area.
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Additionally, the Relative Strength Index (RSI) is in the oversold zone, indicating a possible ETH/BTC price reversal or rebound. However, this will require renewed strength from Ethereum bulls.
long term perspective
While the broader market narrative points to waning interest in Ethereum, some analysts, like the pseudonymous Mr. Mustache, see the ongoing ETH/BTC decline as an opportunity.
According to According to him, the ETH/BTC pair is approaching a trend line that has been in place since 2015, which suggests that the altcoin could strengthen if the historical pattern holds. Position trader Bob Lucas echoed a more critical but balanced perspective.
lucas proposed Ethereum's decline reflects current changes in economic activity within the blockchain ecosystem, with user demand shifting to other platforms. He noted that Ethereum's value may be adjusting to new competition.
He also believes that the growing popularity of Ethereum's Layer 2 solutions could be a potential driver for Ethereum's recovery. However, questions remain as to whether real-world use cases can sustain evaluation at the expected pace.
Ethereum is also lagging behind other altcoins
on the other hand, Ethereum The downward trend is consistent with the rising performance of competing assets such as Solana. Since October 22nd, Solana has shown a consistent upward trend, showing increases in both price and trading volume.
This trend led Solana to a new high of around 0.0697 ETH. The contrast in momentum suggests that investors may be pivoting to altcoins that are believed to offer better growth prospects, and this may be contributing to Ethereum's underperformance compared to other cryptocurrencies on the market. It may be contributing.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. We encourage our readers to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
