The Ethereum to Bitcoin (ETH/BTC) ratio, a metric that measures the price performance of ETH compared to BTC, has hit its lowest point since March 2021.
While the main cryptocurrency increased by 7.45% in the last seven days, once again renewing its all-time high, ETH remained in the same region, with investors concerned about the future of the altcoin.
Ethereum continues to lag behind Bitcoin
In February, the ETH/BTC ratio rose to a yearly high of 0.060. At that time, speculation spread that the price of Ethereum would start to surpass Bitcoin, which could start an altseason. However, this did not happen, as the world's largest cryptocurrency managed to reach new ATHs.
Ethereum, on the other hand, has yet to retest its all-time high, despite reaching $4,000 earlier this year. This disparity in performance could be linked to several factors. For example, both cryptocurrencies have seen the approval of exchange-traded funds (ETFs) this year.
However, while Bitcoin has seen billions of dollars in inflows, ETH has been inconsistent in attracting capital. As a result, the ETH/BTC ratio has fallen to 0.033 — its lowest level in 42 months.
ETH/BTC ratio. Source: TradingView
Furthermore, the disparity in Ethereum’s performance can largely be attributed to sustained selling pressure. For instance, data from CryptoQuant reveals that inflows into the top 10 exchanges surged to 461,901 ETH, valued at approximately $1.5 billion at press time.
This increase in exchange inflows reflects large deposits by investors, indicating a greater willingness to sell. Such movements generally increase the supply of ETH on exchanges, increasing the likelihood of a price drop.
In contrast, low inflows to exchanges usually indicate that investors are holding onto their assets, which is not the current scenario for Ethereum.
Ethereum Enters Exchanges. Source: CryptoQuant
Price prediction
At press time, ETH is trading at $3,317. Despite this, the altcoin is still below the Parabolic Stop And Reverse (SAR) indicator. The Parabolic SAR generates a series of dots that track price movement, positioning itself above the price during a downtrend and below the price during an uptrend.
A “flip” in the dots — shifting from one side to the other — often signals a potential trend reversal. As seen below, the indicator is above the cryptocurrency’s price, suggesting it could reverse its recent gains.
Ethereum Daily Analysis. Source: TradingView
If this is the case and the ETH/BTC ratio declines, Ethereum could drop to $3,083. However, if buying pressure increases, this may not happen. Instead, the price could rise above $3,500 and towards $4,000.
The article Ethereum – Bitcoin ratio hits lowest level since 2021, reveals Analysis appeared first on BeInCrypto Brazil.
