Ethereum is the lowest price collision against Bitcoin in the years, the possibility of further decrease

Ethereum (ETH) prices fell in less than a year against Bitcoin (BTC), with analysts pointing to a further reduction in the coming weeks.

“Falling Knife” – More Sale Pressure Problems

On March 13, the ETH/BTC currency pair fell 1.50 % to 0.022 BTC. This is the lowest price since May 2020.

After a record high of 0.156BTC in June 2017, ETH fall is a part of a long -term downward trend, and has decreased by more than 85 %. This shows that BitCoin is spreading relatively weakness of Ethereum.

Meanwhile, on the two -week ETH/BTC chart, the relative power index (RSI) fell to 23.32, which decreased its record. The RSI is an indicator that measures high purchases or more selling assets, and if it is less than 30, it is usually sold more, and prices are expected to be recovered.

However, in the case of Ethereum, the RSI is still decreasing even after more than two months after entering the over -solid area, and it is possible that the trend of fall is intensifying rather than stabilizing it.

Cryptocurrency analyst Alexandero Otabiani described the situation as a “falling knife”. This is a sudden, a market term for a standing fall, and it refers to situations that discourage buyers from entering very quickly.

In the state of a falling knife, buying at a low level can cause even more harm.

It will require the recovery of RSI’s stability and key resistance levels to show a sign of overthrowing Ethereum. The first step is to retreat at the level of 0.022 BTC. This level also surpassed the decline in ETH/BTC in December 2020, resulting in an increase of 300 %.

If retreat, ETH/BTC can increase around 0.038BTC, which is composed with a fibonic retrieval 0.382 line and 50 weeks of efficiency moving average (EMA50, red wave).

However, at this point, ETH/BTC is likely to continue to follow the “falling knife” path, with the next lower target is 0.020 to 0.016 BTC support zone. The lowest price of this range is less than 30 % of the current price.

The basic factors suggesting further fall

The possibility of falling further against Bitcoin is not only in technical factors but also in the basic factors.

For example, Ethereum is currently in a fierce competition with the competitive layer 1 blockchain such as Solana (Civil).

Van Ekk said that despite the decline in the lamb volume, Solana’s dedicated associate exchange (DEX) volume surpassed Ethereum. In addition, Solana’s trade volume is increasing, while the trade volume of Ethereum is decreasing.

In addition, with the arrival of BitCoin ETF, the traditional cryptocurrency market cycle has changed a major change.

Historically, when Bitcoin rises after half of the city, there is a tendency for Alkoins for the afterlife after the capital, which will enter the period called the “Alto Season”.

However, since the arrival of $ 999 billion in BitCoin ETF in 2024, this cycle has been broken, and the reversal market is decreasing in liquidity, including athem.

Another factor in the fall is the pressure from hereditary sales.

In the recent Babbat Hacking incident, it has been reported that a large amount of ETH has been eliminated, some of which have been laundered by a decentralized platform like Thor China. This sales pressure has spread to the market and may reduce the price of ETH.

The insights and interpretations of this article are the author’s own and does not necessarily reflect the views of the quintal graph. This article does not include investment suggestions or recommendations. Every investment or transaction involves a risk, and readers should make their own research and make decisions.