Despite the rising price of Ethereum, its ratio to Bitcoin remains low. This article examines the factors influencing current trends in the cryptocurrency market.
Weak ETH/BTC Ratio
The ETH/BTC ratio continues to show weakness despite Ethereum's strong rally in July and August. Data from TradingView indicates the ratio has not climbed above 0.05 since July 2024 and currently stands at 0.040.
Institutional Demand for Ethereum
An analyst from CryptoQuant noted that many investors are pulling Ethereum out of exchanges, signaling a move into staking or long-term storage. Such moves often occur before significant price rallies, reducing selling pressure. Additionally, Ethereum hosts 53% of all stablecoins, indicating strong buying power.
Technical Outlook for ETH Price
Ethereum's market structure remains bullish. The token is in an uptrending channel, forming higher highs and higher lows, supported at $4,550 and $4,425. Expected resistance levels are $4,760, $4,945, and $5,135. If the price closes above $4,760, there is a likelihood of returning to levels where previous rallies halted.
Ethereum demonstrates significant price growth and positive indications of institutional interest, despite low values in the ETH/BTC ratio. Expected technical levels also confirm a bullish outlook for ETH.
