**Crypto Market Update: Ether Faces Rough Waters**

Ether (ETH) has dropped about 25% against Bitcoin (BTC) since the start of 2024, hitting its lowest in 40 months. The outlook remains bearish, especially with potential Federal Reserve rate cuts in September.

**Key Points:**

- **ETH/BTC and USD Correlation:** The ETH/BTC pair's correlation with the US Dollar Index (DXY) has surged, indicating traders are favoring Bitcoin as the dollar weakens.

- **ETF Impact:** Bitcoin-focused ETFs launched in January 2024 have seen $17.86 billion in inflows, while Ether's ETFs, launched in July, faced $465 million in withdrawals.

- **Dollar Decline:** The US Dollar Index broke key support levels, suggesting a continued downtrend, which could benefit BTC and crypto overall.

- **ETH/BTC Forecast:** A V-top pattern hints at a potential 10% decline for ETH/BTC by September, unless it rebounds from the 0.0427 BTC support level.

Stay tuned for more updates as the market evolves.