Ethereum/Bitcoin Hits 3-Year Low: Analyst Shares Next Support Level
- ETH/BTC ratio drops to 0.037, lowest since April 2021.
- Key support zones identified at 0.038 and 0.035 BTC levels.
- Competing platforms like Solana gain momentum as ETH struggles.
Ethereums relationship with Bitcoin has reached a critical juncture as the ETH/BTC ratio plunges to levels not seen since April 2021.
This significant decline, marking a 30% drop since July 1, signals a substantial shift in the relative strength between cryptocurrencys two largest assets.
Michaël van de Poppe, CEO of MN Consultancy, has identified crucial support levels in his analysis of the ETH/BTC pair. The primary support zone at 0.035 BTC could provide a foundation for potential recovery, while an intermediate support at 0.038 BTC might offer temporary stability.
These technical levels gain additional significance as the Relative Strength Index (RSI) enters oversold territory, potentially setting the stage for a price reversal.
What can trigger a recovery for Ethereum?
Long-term market observers offer diverse perspectives on Ethereums current predicament. Pseudonymous analyst Moustache points to a historical trend line dating back to 2015, suggesting potential for altcoin strength.
The rise of Layer 2 solutions presents a potential catalyst for Ethereums recovery, though questions persist about the pace of real-world adoption.
This technological evolution occurs against a backdrop of changing user preferences and platform competition, factors that continue to influence Ethereums relative value.
Solanas recent performance highlights the competitive pressures facing Ethereum. Since October 22, Solana has demonstrated impressive momentum, reaching approximately 0.0697 ETH and attracting increased trading volume.
This surge suggests a potential rotation of capital towards alternative platforms perceived to offer superior growth prospects.
As Ethereum navigates these challenges, the interplay between technical support levels, ecosystem development, and market sentiment will likely determine its near-term trajectory.
Read more: https://thenewscrypto.com/ethereum-bitcoin-hits-3-year-low-analyst-shares-next-support-level/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
