According to Cointelegraph: Ethereum has seen a downturn as its native token, Ether (ETH), trades at a 15-month low against Bitcoin (BTC). As Bitcoin receives a boost from ETF and halving fervor, ETH has been losing traction, reaching price levels not seen since Ethereum switched to Proof of Stake (PoS).
The ETH/BTC pair recently slid to as low as 0.056 BTC, breaking below its 200-week exponential moving average (EMA), traditionally a reliable support level, raising further downside risks as we proceed into 2023. If Ethereum fails to reclaim this level, the currency could potentially drop a further 9.5%. However, if it manages to recover, the ETH price may bounce back towards the 50-week EMA.
Data shows institutional capital demonstrating a clear preference for Bitcoin over Ethereum, with Bitcoin-specific investment funds attracting $246 million YTD, while Ethereum funds have seen outflows of $104 million in the same period. This trend is likely driven by anticipation of a potential Bitcoin ETF approval in the U.S. and the prospective impact of Bitcoin's fourth halving event in 2024.
With these factors in play, many are left to question whether Ethereum can reverse its ongoing depreciation against Bitcoin in the coming period.
