Since Ethereum switched to proof-of-stake (PoS), the native cryptocurrency of Ethereum, Ether, has witnessed a sharp decline in value relative to Bitcoin and is currently trading at a record low. The 200-week exponential moving average (EMA), which has historically been a key support level for the ETH/BTC pair, was recently breached by the price of Ethereum relative to Bitcoin, commonly referred to as the ETH/BTC pair, which dropped to 0.056 BTC. Concerns have been raised about the performance of the cryptocurrency in the upcoming months due to the violation of this support level.

The ETH/BTC pair has historically experienced large rebounds when it tested and held the 200-week EMA as support. Conversely, it suffered significant decreases when this assistance was eliminated. As a result, there is a chance that the ETH/BTC pair will continue to decline in 2023, with the next goal being approximately 0.051 BTC, or a 9.5% drop from current levels. Ethereum could return toward its 50-week EMA, which is now located close to 0.065 BTC, albeit, if it retakes the 200-week EMA as support.

Institutional capital flow data is a significant factor in Ethereum's poorer performance compared to Bitcoin. $246 million has been invested in bitcoin-specific investment funds so far in 2023, marking a huge increase. In comparison, within the same time period, $104 million has been taken out of Ethereum funds. A spot Bitcoin exchange-traded fund (ETF) probable approval in the US is one factor contributing to the mismatch in capital movement.

According to experts, the debut of a spot Bitcoin ETF may draw a sizeable $600 billion in investment. The fourth halving of Bitcoin, which is scheduled for April 24, 2024, is another aspect affecting how well it is performing in comparison to alternatives. The block reward for Bitcoin miners will decrease as a result of this halving event from 6.25 BTC to 3.125 BTC. This development is based on previous trends that have often resulted in a decrease in the fresh supply of the cryptocurrency.

These elements have a negative impact on Ethereum's performance in the cryptocurrency market, especially when compared to Bitcoin. Ethereum's status is now overshadowed by the strong demand for Bitcoin caused by the probable ETF launch and the upcoming halving event.