👉Ethereum's native token, recently fell below its long-term support level against Bitcoin (BTC). This has led many leading experts to say that Ethereum is "dying".
👉In November 2024, Ethereum bulls failed to defend this support level. The ETH/BTC pair fell about 15% below the support level, accompanied by high trading volume.
👉In technical analysis, the loss of support – especially in the context of increased trading activity – indicates strong selling pressure. This means that ETH/BTC could continue to decline in the coming weeks.
💥Factors that weaken ETH in 2024
👉In 2024, ETH/BTC fell sharply mainly due to the launch of Bitcoin spot ETFs in the United States, coupled with the poor performance of Ethereum spot ETFs.
👉In addition, Bitcoin's fourth block reward halving event in April 2024 has increased the attractiveness of BTC to individual and institutional investors, leading to capital flows from Ethereum to Bitcoin.
👉Ether is also under pressure from the increased usage of its leading smart contract rival Solana (SOL). In fact, the SOL/ETH pair has increased by more than 925% since December 2022.
💥Ether Price Could Drop Another 50%
👉Technical indicators show that ETH/BTC is entering the bearish phase of the “inverted cup with handle” (IC&H) pattern.
👉This pattern is confirmed by a rounded top, indicating a loss of momentum in the uptrend, followed by a smaller consolidation period, indicating a pause before the downtrend resumes.
👉The IC&H pattern is completed when the price breaks below the general support level of the “cup” and decreases by a distance equal to the distance between the top of the cup and the support level.
👉Applying this scenario to the case of ETH/BTC, the downside target for 2024 could be 0.017 BTC, which corresponds to the important support level from the August 2019 to January 2020 period. This would represent a 50% drop from the current price.
