Fight at the top. If the price of Bitcoin (BTC) has fallen below the symbolic $60,000 in the last 24 hours, Ethereum prices are performing even worse, with more than 5% fall over the same period. And this bad pass of the prince of altcoins against the king of cryptos has lasted for a long time now. Thus, the ETH/BTC ratio, in decline since the end of 2022, has just reached a low point that had not been seen for 3 and a half years!
The ratio between the price of ethers and that of bitcoins has been halved in 2 years
Despite the final approval and listing of Ethereum ETFs in cash at the end of July, the cryptocurrency cannot see its price take off. Worse, in his trading pair with Bitcoin, the prince of altcoins continues to fall little by little, since a ratio that was still 0.08 between the two cryptos 2 years ago, in early September 2022. Just when the ETH network was abandoning the Consensus by Proof of Work (PoW), inherited from Bitcoin, for that by Proof of Stake (PoS).
Today, September 16, 2024, this ETH/BTC ratio has fallen as low as 0.04 (and even a little below), with an ether struggling to maintain at $2,300, and a bitcoin just above $58,000.
As can be seen on the graph from TradingView below, it is necessary to go back to mid-April 2021 to find such a weak ETH compared to BTC. And the ordeal may not be over according to some experts.
Ethereum may continue to bow to Bitcoin for some time
Not only have Ethereum ETFs changed nothing in this slow fall in the face of the leader in crypto-assets, but analysts in this young financial market do not see any improvement in the immediate future.
This is the case of Alex Kuptsikevich, senior analyst at FxPro quoted by CoinDesk, who believes that the current low point could even go as far as to be halved, with an ETH/BTC ratio that can go down as low as 0.02:
"This ratio has the potential to fall again, in the range of 0.02 to 0.03. This is surprising given the generally positive sentiment of investors towards altcoins a few months after the halving of Bitcoin (...). Investors are likely to expect more clarity on future monetary and regulatory policies. Only a sustained recovery will encourage investors to seek higher returns and take more risk by buying altcoins. "
Alex Kuptsikevich, analyst at FxPro
This weakness of ethers against bitcoins has already cost traders who were hoping for an alt season obviously too soon. Thus, a trader recently lost $43 million by betting on Ethereum rather than Bitcoin. The big return to the forefront of the blockchain may return one day, but it doesn't seem to be for now. To follow!
