Ethereum has fallen to its lowest level in the last four years in the ETH/BTC ratio. Analysts state that Ethereum has now started to follow an independent path and may accelerate in the future. This development may offer new opportunities to investors. While Ethereum has significantly weakened its relationship with Bitcoin at $ 98,987 at $ 3,372, CryptoQuant CEO Ki Young Ju emphasized that the ETH/BTC Net Unrealized Profit/Loss level has fallen to its lowest level in the last four years. This change may indicate the beginning of a new era in Ethereum's market dynamics.
Ethereum has begun to lose its correlation with Bitcoin. Ki Young Ju said, “The BTC-ETH 180-day Pearson correlation is at its lowest level in three years. A 10% increase in Bitcoin can only cause a 3% increase for Ethereum,” indicating that the two crypto assets are now following different paths. This independent movement shows that Ethereum may follow a different price movement than Bitcoin and that investors should evaluate both assets with separate strategies.
Former Goldman Sachs executive Raoul Pal also supports this view. Pal believes that Ethereum is following Bitcoin’s pattern from 2011-2019 and that current charts suggest that Ethereum could accelerate. “Ethereum could accelerate just like Bitcoin and reach $20,000/ETH. However, I expect more acceleration from there,” Pal said. These comments suggest that Ethereum has long-term potential.
Ethereum Offers Opportunities Despite Drops Ethereum’s price is trading at $3,054 at the time of writing. The second-ranked crypto asset by market cap has seen a 1% drop in the past 24 hours. However, the ETH/BTC ratio dropping to its lowest level in four years may present new opportunities for investors. Ki Young Ju notes that Ethereum holders can take advantage of these opportunities despite their current losses.
The fact that ETH holders have not yet realized their losses presents a picture similar to Ethereum’s lows in early 2020. Market analysts consider this situation a critical turning point for investors. The decreasing correlation between Ethereum and Bitcoin shows that investors need to develop different strategies.
Whether Ethereum will be able to progress in line with its own dynamics is one of the most curious topics in the crypto market. However, the potential that analysts point to is a promising indicator for Ethereum's future performance.
