Ethereum (ETH) continued its freefall against Bitcoin, falling to its lowest level since April 2021. It has dropped by over 55% from its highest point in 2021.
Sell-off Acceleration
Ethereum was trading at 0.039 BTC, down by 24% this year and by 35% from the year-to-date high. It has also dropped against other cryptocurrencies like Solana (SOL), Binance Coin (BNB), and Tron (TRX). In US dollar terms, the coin has dropped for four consecutive months, now trading near $2,300, its lowest point since February.
Market Issues
Ethereum's sell-off is likely due to the weak response from institutional investors, who have largely avoided spot ETFs. Data shows that Ether ETFs have had net outflows of over $581 million, while spot Bitcoin funds hold over $54 billion and have had net inflows of $18 billion. Ether has also declined due to recent liquidations by the Ethereum Foundation and Vitalik Buterin. Buterin has sold tokens worth $2.2 million, while the foundation has sold 350,000 coins.
Bitcoin Pair Decline
Ethereum is also losing market share to layer-2 networks like Base, Arbitrum, Polygon, and Blast, which are known for faster speeds and lower transaction costs. Additionally, many smart money investors are selling the coin. For example, one investor sold ETH worth almost $10 million in the last 24 hours. Another top entity that sold its Ethereum assets was Jump Trading, one of the top players in the crypto industry, reducing its total Ether holdings from over $531 million in July to zero.
Ethereum continues its decline against Bitcoin after forming a triple-top chart pattern around the 0.088 level between May and September 2021. Current signals indicate further price drops, with the next reference point being 0.0224, representing a 42% drop from the current level.
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