ETH Price Approaches 3-Year Lows: Can an Ethereum ETF Reverse the Trend?

The price of Ether in Bitcoin is reaching its lowest point in three years. Despite this decline, there are indicators suggesting a bullish trend, and analysts are predicting potential gains for ETH/BTC. While Ethereum has seen a more than 100% increase in price when measured in USD since switching to proof-of-stake in September 2022, it has fallen approximately 33% when priced in Bitcoin. ETH/BTC has continued to decline, losing over 9% in the past month and reaching a low of 0.048 BTC, a level not seen since May 2021.

The price of Ether has experienced an 11% drop in the past week, bringing the relative strength index (RSI) down to 44 on the daily time frame. This decline suggests that Ether is no longer considered “overbought.” The RSI is a popular indicator used to determine whether an asset is oversold or overbought based on recent price changes. Traders should monitor the $3,200 psychological mark, as it could trigger the liquidation of over $97 million worth of leveraged short positions. If the price drops further to $3,170, it could result in the liquidation of more than $329 million worth of short leverage across all exchanges.

This year, the price of Ether has been underperforming compared to Bitcoin in USD terms. Bitcoin has seen a 49% increase year-to-date, while Ether has only risen by 36%. Over the past three months, BTC has risen by 56% while ETH has risen by 28%. The question arises: is now a good time to buy ETH? The last time the ETH/BTC ratio was at 0.048 BTC was in May 2021, and this was followed by two consecutive months of decline for Ether. There are indications that Ether may be gearing up for a rally, particularly with the potential approval of Bitcoin and Ether exchange-traded funds (ETFs) in Hong Kong.

Andrey Stoychev, the head of Prime Brokerage at Nexo, believes that the upcoming block rewards halving for Bitcoin, combined with the low Ether balances on exchanges, could attract more investors to ETH. Stoychev suggests that if Bitcoin- and Ether-based ETFs are approved in Hong Kong, it could lead to a sharp increase in Ether’s value. He also states that the current price levels of Ether present a good buying opportunity, with key levels to watch being $3,300 on the upside and $3,000 on the downside.

Jonathan Caras, the head of communication at Levana perpetual futures protocol, emphasizes that the focus on Bitcoin ETFs and the high transaction costs on the Ethereum network have shifted attention away from Ether. Caras believes that Ether will need a significant catalyst, such as an Ethereum ETF or another method of promoting institutional adoption, in order to reverse its downward trend and make a comeback.

Pieter Kellerman

Pieter Kellerman

7 thoughts on “ETH Price Approaches 3-Year Lows: Can an Ethereum ETF Reverse the Trend?

  1. The ETH/BTC ratio hasn’t been this low since May 2021. Will history repeat itself? Only time will tell! ⌛️

  2. The last time the ETH/BTC ratio was this low, Ether experienced a long decline. History may repeat itself.

  3. ETH/BTC has been declining, but it’s not the end of the world! Things can turn around quickly in the crypto world! 🌍

  4. The RSI drop indicates Ether is no longer considered overbought. Time to assess the situation and plan accordingly!

  5. Jonathan Caras highlights the focus on Bitcoin ETFs and high transaction costs on the Ethereum network. It’s time for Ether to find a catalyst and make a comeback! 💪

  6. Let’s keep an eye on that $3,200 mark and see if it leads to some interesting market movements!

  7. The high transaction costs on the Ethereum network are just adding to Ether’s problems.

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