Ethereum (ETH) has struggled to keep up with Bitcoin (BTC) since 2021. The ETH/BTC chart shows no signs of a trend reversal yet. Since its peak, Ethereum has lost almost 60% of its value against Bitcoin, which is not only a problem for ETH, but also for other altcoins. Analysts are divided on whether recovery is in sight.
(Above: ETH/BTC remains in downtrend)
Ethereum lags behind Bitcoin
Ethereum has been moving in a downward channel against Bitcoin since December 2021. This pattern of lower highs and lows indicates an ongoing bearish trend. Currently the ETH/BTC rate is around 0.035 BTC, which means that 1 ETH is equal to 0.035 BTC.
In November, the chart reached a low of 0.032 BTC, a level that remains crucial. If this is broken, the price could fall further to 0.026 BTC, which would mean an additional loss of 25%. Yet there are also positive signals: technical indicators such as the RSI and MACD suggest that a trend reversal is possible. A break above 0.040 BTC, the most recent resistance level, would provide bullish confirmation.
Bitcoin Dominance Peaks, But Correction Possible
(Above: BTC dominance appears to be peaking)
The Bitcoin Dominance Ratio (BTCD), which represents Bitcoin’s market share within the overall crypto market, appears to have peaked at around 61%. After a year and a half of growth, technical analyzes now point to a possible correction to 51%. Currently the dominance is 58%.
A decline in BTC dominance could provide opportunities for Ethereum and other altcoins to recover. This would pave the way for a so-called ‘altseason’, a phase in which altcoins increase significantly in value. Many investors are eagerly awaiting such a scenario. For now, we remain waiting for Ethereum to break above its current downtrend and see a further decline in BTC dominance.
Conclusion: Waiting for a turning point
As long as Ethereum does not break out of its bearish trend, it will remain difficult for altcoins to gain ground against Bitcoin. A break above key resistance levels such as 0.040 BTC, combined with a decline in BTC dominance, could put a positive spin on the crypto market. This could be the start of a new altseason.
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Source: https://newsbit.nl/ethereum-koers-onder-druk-wat-kunnen-we-verwachten-van-de-bitcoin-dominantie/
