Originally published on: November 16, 2024
Ethereum’s native token, Ether (ETH), is facing a grim outlook as it recently dipped below its long-standing support level against Bitcoin (BTC). This downward trend has analysts predicting that Ethereum may be “dying a slow death.”
The ETH/BTC pair broke below its ascending trendline support, a key indicator that has historically marked market bottoms since 2016. This includes significant rebounds in the past, such as a 300% surge between December 2020 and December 2021 and a remarkable 1,800% recovery between January 2017 and May 2017.
The decline in Ethereum’s performance against Bitcoin has been attributed to several factors. The launch of spot Bitcoin exchange-traded funds (ETFs) in the US and the underperformance of Ethereum’s own spot ETF have shifted capital towards Bitcoin. Additionally, the rise of Solana (SOL) as a smart contracts rival has further impacted Ethereum’s market dominance.
Technical analysis suggests that ETH/BTC is entering the breakdown stage of an inverse cup-and-handle pattern. If the price continues to decline, the downside target for 2024 could be 0.017 BTC, a significant support level. However, a rebound from the current support level at 0.0317 BTC could invalidate this pattern and push the pair towards 0.043 BTC by the end of 2024.
While these insights provide a glimpse into the potential future of Ethereum, it’s important to note that all investment decisions carry risks. Readers should conduct their own research and analysis before making any financial moves.
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