Ethereum
Ethereum Continues Losing Ground To Bitcoin With ETH/BTC Ratio at Multi-Year Lows
Ethereum (ETH) continues to perform poorly against Bitcoin (BTC) as the second-largest digital asset by reported market cap hit new multi-year lows against the top cryptocurrency.
Ethereum Continues To Underperform Against Bitcoin
Today, Ethereum’s native ETH token slid further against BTC, recording a low of 0.0365 and erasing all its gains against Bitcoin since April 2021. This multi-year low against BTC is bound to dampen the expectations of ETH permabulls.
In December 2021, ETH reached a local high of 0.0865 against BTC. However, since then, the smart contract token has been on a continual downward trajectory, declining by almost 58% against the premier digital asset.
Notably, the last monthly green candle that ETH posted against BTC was in May 2024. It is highly likely that by the end of October, ETH will have posted five consecutive monthly red candles against Bitcoin.
On a year-to-date (YTD) basis, ETH is down by over 30% against BTC. Interestingly, within the last three months, the ETH/BTC trading pair has declined by over 22%, indicating that major losses against BTC are more recent.
While various factors could be blamed for ETH’s lackluster price performance, a major reason is the rapidly increasing competition from rival smart contract blockchains such as Solana (SOL).
The chart below shows that SOL has been on an upward trajectory against ETH after a brief consolidation in June 2024. On a YTD basis, SOL has recorded almost 60% gains against ETH. At the time of writing, the SOL/ETH ratio is trading close to a new all-time high (ATH) at 0.069.
What Is Holding ETH Back?
Although Ethereum adoption continues to grow – boosted by the recent Ethereum exchange-traded fund (ETF) approval by the US Securities and Exchange Commission (SEC) – the effects are not entirely reflected in the price action of the native ETH token.
A recent report found that more than 34 million ETH – close to 30% of its supply – is currently staked. Despite the lower circulating supply as a result of staking, ETH’s price continues to perform poorly against other digital assets.
In addition, the extraordinary growth witnessed by Ethereum layer-2 (L2) solutions such as Optimism, Arbitrum, and Base, has taken the attention away from the smart contract platform. In August, Justin Bons, founder of Cyber Capital said “Ethereum is dying while L2’s dance on its grave.”
Despite the growing pessimism toward its price action, ETH whales remain unfazed as they continue to scoop more tokens to benefit from potential future price appreciation. Recent analysis found that Ethereum whales now control about 43% of ETH’s entire supply.
Similarly, earlier this month, asset manager BlackRock was found to be selling its BTC holdings for ETH, suggesting the firm’s bullish outlook on the token. At press time, ETH trades at $2,532, up 0.2% in the past 24 hours.
Featured Image from Unsplash.com, Charts from TradingView.com
Ethereum
Deribit Moves $783M in Ethereum To Cold Storage: A Bullish Signal for ETH?
While Ethereum seems to have begun its own major rally, the asset has recently experienced significant activity on the Deribit Options Exchange which begs the question of what it means for ETH’s price.
A CryptoQuant analyst known as Amr Taha detailed these developments in a post on the CryptoQuant QuickTake platform. The analysis focused on substantial outflows from the exchange to cold wallets, highlighting potential implications for market sentiment and liquidity.
ETH Netflows On Deribit And The Implications
According to Taha, the Deribit Options Exchange recorded a notable transaction involving 233,000 ETH transferred to a cold wallet. Valued at approximately $783 million, the transaction was executed at an average price of $3,350 per Ethereum.
This was not limited to Ethereum alone—Bitcoin also witnessed a similar outflow, with 31,000 BTC worth $3.038 billion moved to cold storage. These transfers have sparked speculation about the motivations behind such activity and their potential impact on the broader market.
As a result, the CryptoQuant analyst highlighted four major implications of this movement. First, the reduction in selling pressure is notable. Assets stored in cold wallets are less likely to be sold immediately, which can decrease liquidity on exchanges.
Taha noted that this scenario may contribute to price stability or even further boost the bullish trend in the market if demand remains steady or increases.
Another key takeaway from these transactions is the possibility of institutional accumulation. Such large-scale transfers often indicate that institutional investors or high-net-worth individuals are confident in Ethereum’s long-term value.
Furthermore, Taha highlighted Deribit’s strategy of moving these funds as part of a risk management approach. The analyst wrote:
Moving assets to cold storage is a security practice to minimize exposure to hacking risks. It also reflects a cautious approach, likely due to regulatory scrutiny or anticipated market volatility.
Additionally, Taha highlighted that this move could also have impact on market sentiment where by traders could interpret these transactions as bullish, “leading to increased buying activity.”
Ethereum Market Performance
Meanwhile, Ethereum currently trades above the $3,300 mark following an increase of 8.2% in the past week and 1.3% in the past 24 hours. The asset’s market cap has also significantly surged alongside its price with a current valuation nearing $400 billion.
According to renowned crypto analyst known as EᴛʜᴇʀNᴀꜱʏᴏɴᴀL on X, Ethereum current price chart appears to be mirroring that of 2016-2017 where it experienced a “mega bull” run.
According to the analyst, “altcoins will follow” as Ethereum continues to increase.
#Ethereum $10k+ step by step!$ETH repeats the bullish megaphone pattern it drew while heading towards the 2016-2017 mega bull period, before the 2024-2025 mega bull period.#Alts will follow! pic.twitter.com/VRVI8lwnsS
— EᴛʜᴇʀNᴀꜱʏᴏɴᴀL (@EtherNasyonaL) November 22, 2024
Featured image created with DALL-E, Chart from TradingView
Ethereum
Massive Ethereum Buying Spree – Taker Buy Volume hits $1.683B In One Hour
Ethereum surged over 10% yesterday, marking an impressive recovery alongside a very bullish day for the entire crypto market. This surge has reignited investor optimism, especially as Ethereum approaches its yearly highs.
Key data from CryptoQuant highlights a significant bullish signal: Ethereum’s Taker Buy Volume hit an astonishing $1.683 billion in a single hourly candle. This metric reflects aggressive buying activity in the futures market, further supporting Ethereum’s potential for continued upward momentum.
The driving force behind this rising demand for Ethereum appears to stem from profits being cycled out of Bitcoin. With Bitcoin consistently breaking all-time highs, investors are reallocating gains into ETH, boosting its price. Ethereum’s ability to capitalize on Bitcoin’s momentum underscores its position as the second-largest cryptocurrency and a key player in the broader market trend.
However, the next few days will be crucial for Ethereum as it nears its yearly highs. A strong breakout above these levels could propel ETH into a new uptrend, further strengthening its bullish narrative.
Ethereum Bulls Waking Up
Ethereum bulls are finally showing signs of life after eight months of bearish price action, with the price surging over 40% since November 5. This strong upward momentum aligns with the broader market rally, fueling optimism that Ethereum’s recovery is just beginning. The resurgence in bullish sentiment has positioned Ethereum as a key focus for investors seeking opportunities in the current market environment.
According to data by CryptoQuant analyst Maartunn, Ethereum’s Taker Buy Volume recently hit $1.683 billion in a single hourly candle, highlighting significant demand and the involvement of high-volume trades.
This aggressive buying activity is a bullish signal, suggesting increased confidence in Ethereum’s potential to sustain its rally. Strong demand at this scale creates upward pressure on the price, reinforcing the bullish narrative for ETH.
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However, Ethereum still faces a critical hurdle at the $3,550 level, a significant supply zone that has acted as a barrier since late July. The next few days will be pivotal for Ethereum, as breaking above this key resistance could signal the continuation of its upward trajectory. Failure to do so, however, might result in a short-term consolidation. All eyes are now on ETH, as its next moves could set the tone for the altcoin market.
ETH Holding Above Key Levels
Ethereum (ETH) is trading at $3,333 after a 10% surge yesterday, marking a significant rebound for the second-largest cryptocurrency. The price is testing a critical supply zone just below the $3,450 level, a resistance area that bulls need to reclaim to confirm the uptrend and maintain momentum for new highs.
This supply zone has historically acted as a key barrier, and breaking above it with conviction would signal strong buying pressure and the potential for a sustained rally. Holding above the 200-day moving average (MA) at $2,959 further strengthens the bullish case for Ethereum, as this indicator is widely regarded as a benchmark for long-term price trends.
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Should Ethereum maintain its position above the 200-day MA and push decisively past the $3,450 level, it could pave the way for a bullish rally, targeting higher resistance zones in the coming days.
However, failure to overcome this supply area may result in short-term consolidation as bulls regroup to challenge the level again. For now, the market focuses on Ethereum’s ability to clear this crucial resistance and continue its upward trajectory.
Featured image from Dall-E, chart from TradingView
Ethereum
Ethereum Attempts Key Breakout: Analysts Set $3,700 Target
Ethereum (ETH) price is finally moving after a week of sideways movement. In the last hour, the second-largest crypto has seen a 5% surge to retest the key $3,200 level. Some market watchers believe ETH is about to move toward Q1 highs and kickstart the altseason.
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Ethereum Retests Key Support Level
Ethereum has been heavily criticized for its performance against Bitcoin (BTC), with investors worrying that ETH might not run to new highs this cycle. ETH’s price action has moved sideways while the flagship crypto continues its price discovery mode.
On Thursday morning, BTC neared the $100,000 mark after hitting its latest all-time high (ATH) above $98,000, while ETH continued hovering in the mid-zone of its $3,000-$3,200 one-week price range.
However, Ethereum has seen a remarkable 5% pump to trade above the $3,200 mark for the past hour. The second-largest crypto rose above $3,200 a week ago for the first time in over three months, hitting the $3,400 mark before retracing 5%.
Over the past week, ETH attempted to reclaim the $3,200 resistance as support but failed twice to achieve it. Today, the cryptocurrency’s jump has propelled its price past the key resistance toward the mid-range of the $3,300 zone, reigniting a bullish sentiment toward Ethereum.
Analyst Crypto Yapper asserted that the $3,200 is “the next big breakout” for Ethereum, as it has been a major rejection point for the last week. The analyst highlighted that after ETH’s consolidation, the next move was a retest of this level, which could see the crypto breakout toward the $3,500 mark if successfully reclaimed.
However, failing to turn this resistance into support could likely see ETH’s price lose the $3,000-$3,100 support and move toward the $2,600 level, a major resistance before this month’s breakout, before attempting to reach $3,500.
ETH’s Breakout To Kickstart The Altseason
Crypto analyst Rekt Capital noted that ETH is breaking out of a short-term bull flag today. Per the post, the King of altcoins broke out of a three-week bull flag formation after surpassing $3,200. A confirmation of the breakout “would see ETH revisit the $3,700 above,” forecasted the analyst.
Similarly, crypto analyst Zayk pointed out that the cryptocurrency displayed a two-week bullish pennant formation in the 4H timeframe. A successful breakout from the bullish pattern above the $3,200 mark could target a 15% rally to $3,700.
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Crypto trader Daan stated that investors should wait to see if Ethereum’s current momentum sustains. However, he considers that the next impulse for ETH/BTC is “likely to have some legs and go for some proper relief.”
This run could see the ETH/BTC trading pair move back toward the 0.04 mark, which it traded at two weeks ago. This move would display a 20% surge from the current levels, which “should absolutely send the overall altcoin market and bring BTC Dominance down a decent amount.”
As of this writing, the ETH’s price holds above $3,350, trading 2% below last week’s high.
Featured Image from Unsplash.com, Chart from TradingView.com
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