The market has shown less interest in Ethereum [ETH] despite the launch of a Spot ETH ETF in the US in Q3.
Ethereum fell 25% in Q3 and hit a record low in the ETH/BTC pair, which tracks the altcoin's relative performance against Bitcoin [BTC].
However, the Federal Reserve's easing move last week helped the altcoin recover to $2,500, after three consecutive days of gains.
This positive development was also marked by net inflows into the US-based Spot ETH ETF totaling $8.2 million over the last two trading days.
When could ETH/BTC bottom?
However, crypto analyst Benjamin Cowen remains cautious about ETHâs consolidation and the ETH/BTC pair bottoming.
Cowen said that the ETH/BTC pair may struggle to bottom without returning to the 50-day Moving Average (MA), citing trends from 2016 and 2019.
âAfter the #ETH#BTCdeclines in 2016 and 2019, the bottom was only in place when ETH/BTC moved back above the 50-day moving average⊠So as long as ETH/BTC remains below the 50-day moving average, further declines in ETH/BTC are possible.â
However, he also emphasized that the pair could recover if it bounces above the 50-day MA, which is currently at 0.04255.
âBut once it breaks above the 50-day moving average, I think there's a very good chance that the bottom is in.â
Price action above the 50-day moving average typically indicates short-term bullish momentum. Meanwhile, some whales are profiting from the recent surge in Ethereum prices. According to Spot On Chain, a whale sold 15,000 ETH worth $38.4 million on Kraken. The address made two other sales in Q3, leading to a slight decline in ETH.
However, overall net inflows from exchanges have decreased slightly despite the recent surge. This suggests that selling pressure on centralized exchanges has eased somewhat. This could, in turn, facilitate further ETH price recovery.
Selling pressure has eased alongside increased demand for Ethereum from US investors, as shown by the Coinbase Premium Index and recent positive flows from US-based ETH ETFs.
However, it remains to be seen whether ETHâs rally will continue after the hype surrounding the Federal Reserveâs rate cut has subsided.
