Ether (ETH) is rapidly losing ground against Bitcoin (BTC) after breaking a long-standing support level. Prominent analysts are voicing concerns about the altcoin's future.
Breaking the Upward Trend
The ETH/BTC pair lost support on an upward trendline that coincided with market bottoms since 2016. Significant rebounds, such as a 300% increase from December 2020 to December 2021 and a 1,800% rise from January 2017 to May 2017, were seen at these levels. In November 2024, this support was broken, accompanied by a rise in trading volumes, indicating strong selling pressure.
Factors Influencing ETH's Decline
In 2024, ETH/BTC underperformed largely due to the launch of spot Bitcoin ETFs in the United States and the underperformance of Ethereum's own spot ETF. Capital shifted from ETH to BTC, exacerbated by Bitcoin's fourth halving. Rivalry from Solana further pressured ETH, with SOL/ETH rising over 925% since December 2022.
Potential Implications for ETH Price
Chart technicals show ETH/BTC entering the breakdown stage of its inverse cup-and-handle pattern. A breakdown below the neckline could target 0.017 BTC in 2024, 50% below current levels. Conversely, a rebound from around 0.0317 BTC might invalidate the pattern, pushing the price to 0.043 BTC by end of 2024.
Despite current challenges, the future of Ether relative to Bitcoin remains uncertain, yet the current dynamics have analysts concerned.
