Ethereum losing streak vs. Bitcoin hits 15 months — Can ETH price reverse course?
The rate of Ethereums native token, Ether (ETH), is trading around a 15-month low versus Bitcoin (BTC), and the lowest given that Ethereum switched to proof-of-stake (PoS). Will it continue to compromise for the remainder of 2023? Lets take a closer take a look at the charts. Ethereum cost breaks below critical support vs. BitcoinThe ETH/BTC set dropped to as low as 0.056 BTC previously this week. In doing so, the set broke listed below its 200-week exponential moving average (200-week EMA; the blue wave) near 0.058 BTC, raising drawback risks even more into 2023. The 200-week EMA has actually traditionally acted as a dependable assistance level for ETH/BTC bulls. For example, the set rebounded 75% three months after evaluating the wave support in July 2022. On the other hand, it dropped over 25% after losing the exact same support in October 2020. ETH/BTC weekly cost chart. Source: TradingViewETH/BTC looks at similar selloff risks in 2023 after losing its 200-week EMA as assistance. In this case, the next disadvantage target looks to be around its 0.5 Fib line near 0.051 BTC in 2023, down about 9.5% from current rate levels.Conversely, ETH price might rebound towards its 50-week EMA (the red wave) near 0.065 BTC if it recovers the 200-week EMA as support.Bitcoin bull case eclipses EthereumEthereums persistent weakness versus Bitcoin is reflected in institutional capital flow data. For circumstances, as of Oct. 6, Bitcoin-specific financial investment funds had actually drawn in $246 million year-to-date (YTD), according to CoinShares. On the other hand, Ethereum funds have lost capital, seeing outflows worth $104 million in the exact same period.Net streams into crypto funds (by property). Source: CoinSharesThe discrepancy is most likely due to growing buzz about a possible area Bitcoin exchange-traded product (ETF) approval in the U.S. Trade pundits argue that a spot Bitcoin ETF launch will attract $600 billion. In addition, Bitcoins fourth halving on April 24, 2024, is likewise functioning as a tailwind versus the altcoin market.Related: Bitcoin price gets new $25K target as SEC choice day improves GBTCThe halving will minimize the Bitcoin miners block benefit from 6.25 BTC to 3.125 BTC, a bullish case based on historical precedent that cuts new supply in half. This short article does not include financial investment advice or recommendations. Every financial investment and trading move includes danger, and readers should conduct their own research study when making a choice.
Ethereum cost breaks listed below crucial assistance vs. BitcoinThe ETH/BTC set dropped to as low as 0.056 BTC previously this week. In doing so, the pair broke listed below its 200-week exponential moving average (200-week EMA; the blue wave) near 0.058 BTC, raising disadvantage threats further into 2023. Source: CoinSharesThe disparity is likely due to growing buzz about a possible area Bitcoin exchange-traded product (ETF) approval in the U.S. Trade experts argue that an area Bitcoin ETF launch will attract $600 billion.
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Other Questions People Ask
What factors are contributing to Ethereum's losing streak against Bitcoin?
Ethereum's losing streak against Bitcoin can be attributed to several factors, including the recent drop below its 200-week exponential moving average (EMA), which has historically served as a critical support level. Additionally, institutional capital flows show a stark contrast, with Bitcoin attracting significant investments while Ethereum has experienced outflows. The anticipation surrounding a potential Bitcoin ETF approval is also drawing attention away from Ethereum, further exacerbating its price decline.
Can Ethereum's price reverse course despite its current performance against Bitcoin?
While Ethereum is currently facing a challenging period, there is potential for a price reversal if it can reclaim the 200-week EMA as support. If ETH manages to bounce back, it could target the 50-week EMA near 0.065 BTC. However, the ongoing bearish sentiment and market dynamics suggest that any recovery may be contingent on broader market trends and investor sentiment towards Ethereum compared to Bitcoin.
What are the implications of Ethereum breaking below its 200-week EMA?
Breaking below the 200-week EMA is significant for Ethereum as it raises downside risks and indicates a potential continuation of its losing streak against Bitcoin. Historically, such breaks have led to further declines, with the next downside target potentially being around the 0.5 Fibonacci line near 0.051 BTC. This technical analysis suggests that traders should be cautious and monitor for any signs of recovery before making investment decisions.
How does the upcoming Bitcoin halving impact Ethereum's price outlook?
The upcoming Bitcoin halving on April 24, 2024, is likely to create a bullish sentiment around Bitcoin, which could overshadow Ethereum's performance. Historically, halvings have reduced supply and driven up prices, attracting more investment into Bitcoin. This could lead to further capital flight from Ethereum as investors seek the potential gains associated with Bitcoin, thereby prolonging Ethereum's losing streak against it.
What should investors consider when evaluating Ethereum's performance against Bitcoin?
Investors should closely monitor technical indicators such as the 200-week EMA and market sentiment surrounding both cryptocurrencies. The disparity in institutional investment flows is also crucial; while Bitcoin is seeing inflows, Ethereum is experiencing outflows, which could signal a shift in investor confidence. Additionally, keeping an eye on macroeconomic factors and upcoming events like the Bitcoin ETF approval can provide insights into potential price movements for Ethereum.