Ethereum's Value Declines Amidst Intensified Selloff, ETH/BTC Ratio at Lowest Since 2021
In the last 30 days, Ethereum's price has plunged by over 30%, reaching its lowest performance against Bitcoin since January 2021. This trend indicates potential sustained bearishness as selling pressure increases.
For most of February, Ethereum remained within a confined price range. However, after breaching the lower boundary of this range on February 25, it entered a decline. It is currently valued at $2,089, matching prices from December 2023. This decline has driven the ETH/BTC ratio down to 0.02, its lowest point since early 2021.
The ETH/BTC ratio reflects how many Bitcoin are needed to purchase one Ethereum. A decreasing ratio suggests that Ethereum is underperforming compared to Bitcoin. One factor contributing to this trend is the increase in Ethereum's circulating supply due to a reduced burn rate, adding downward pressure on its price.
According to data from Ultra Sound Money, more than 66,748 ETH tokens, valued over $140 million, have entered circulation over the past month. An increase in supply typically leads to a price decline, particularly when demand does not match this excess.
Potential Outlook: ETH Scrutinized as Bears Threaten Drop Below $2,000
On the daily chart, Ethereum trades beneath its long-term descending parallel channel's lower trend line, signaling increased selling momentum and risk of further price drops. Consequently, Ethereum may fall below $2,000 and approach $1,922.
However, should demand for Ethereum rebound, its price could potentially rise toward $2,223.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.