Ethereum (ETH), Bitcoin (BTC) has declined to its perennial lowest levels and made analysts to estimate that there may be more decreases in the coming weeks.
Ethereum decline continues
As of March 13, the ETH/BTC parity fell more than 1.50 %to 0.022 and has seen its lowest level since May 2020. This decrease is part of Ethereum’s ongoing perennial downward trend after making a peak of 0.156 in June 2017. Since then, ETH has lost more than 85 %of Bitcoin.
Technical indicators also indicate that the decline tendency continues. In the two -week ETH/BTC graph, the relative power index (RSI), which is used to measure excessive purchase or sale conditions of assets, reached the lowest point in its history to 23.32. Usually the fall of RSI below 30 indicates that the over -sales zone has been entered and may be a recovery signal. However, the RSI value of Ethereum shows that the decline has accelerated by remaining in the extreme sale zone for two months.
Crypto analyst Alessandro Ottaviani describes the current state of Ethereum as “falling knife .. This term is used to describe the sharp and rapid fall of an asset, and usually causes investors to avoid early purchase. In order for ETH to recover in the short term, RSI’s stability and critical resistance levels need to be overcome. The 0.022 BTC level is important in this respect, because the recovery, which started at this level in December 2020, caused an increase of 300 %of the ETH/BTC.
Can ETH/BTC fall more?
Signs that Ethereum may experience further decreases against Bitcoin are not limited to technical indicators. The main factors also offer a downward appearance for ETH. For example, Ethereum is currently in serious competition with Solana (left), one of its powerful competitors. According to Vaneck’s report, Solana’s decentralized stock market (Dex) transaction volume passed Ethereum despite the harsh decline in breast token trade. While Ethereum’s trading volumes have fallen in recent months, Solana’s trading volume has increased steadily.
In addition, the launch of Spot Bitcoin ETFs changed the traditional crypto market cycle. When Bitcoin rose in the previous cycles after the Halving, the capital slid to the Altcoins and started a “lower season .. However, in 2024, the entrance of 129 billion dollars to Bitcoin ETFs caused the liquidity from the Altcoin market. This led to the loss of value of many Altcoin, especially Ethereum, against BTC.
Bybit Hack also affected ETH
Another development that increased sales pressure on ETH was the last cyber attack on the Bybit stock exchange. After the attack, a significant amount of ETH was sold and some of the funds were laundered through decentralized platforms. This stands out as one of the factors that increase the pressure of Ethereum’s price. Considering the technical indicators and basic dynamics, it is stated that ETH/BTC parity can test historical support levels in the 0,020-0.016 BTC range. In particular, the 0.016 BTC level points to a point of approximately 30 %lower than the current price levels. Whether Ethereum can hold at these levels will be one of the critical factors that determine the direction of the market in the coming weeks.
