Whale Sell Pushes ETH/BTC to 3.5 Year Low, Where Next for Ethereum?

Ethereum is at its weakest level against Bitcoin since early 2021 as the ETH/BTC ratio continues to break down.

The ratio is a measure of the price of ETH in Bitcoin terms, not US dollars. Despite falling 21% from its all-time high, Bitcoin has remained robust, while Ethereum continues to fall 53% from its 2021 peak.

In a post on X on September 16, ITC Crypto founder Benjamin Cowed predicted that the ETH/BTC ratio “will likely fall to 0.03-0.04 and then trend upward in 2025.”

It’s almost over.

i believe #ETH / #BTC it will probably drop to 0.03-0.04 and then trend upwards in 2025.

It could fall as early as this week or as late as December

Based on previous capitulations, I think it will happen sooner rather than later

I’ll make a video about it tomorrow https://t.co/rwqj5u4n8A pic.twitter.com/lc7iMruoqf

— Benjamin Cowen (@intocryptoverse) September 16, 2024

He added that it could fall as soon as this week or as late as December, but “based on previous capitulations, I think it will happen sooner rather than later.”

Whales unloading ETH

Galaxy’s head of research Alex Thorn also noted the disintegration of Ethereum prices, reporting that ETH/BTC just traded at a handle of 0.03 for the first time in three and a half years.

ETHBTC just traded at 0.03 handle for first time in 3.5 years (April 2021)

-53% since the merger in September 2022

what does this train stop for? pic.twitter.com/Olj6SGEiVe

— Alex Thorn (@intangiblecoins) September 15, 2024

Meanwhile, analyst ‘Master Kenobi’ he said that these patterns were cyclical. Historically, the ETH/BTC pair declined following a Bitcoin halving, with trend reversals between 168 and 224 days after the event in previous cycles. He added that a reversal is expected soon, as it is currently around 150 days after the halving.

“Fundamentally, nothing has changed for Ethereum in a negative way,” he said, before adding:

“The current move is artificially driven by a lot of FUD in the market, and the reality is that they want you to sell your ETH at a low price. The underlying strength of Ethereum remains intact, and this downward pressure appears to be a tactic to shake the weak hand.”

On September 16, Galaxy Trading observed that markets are now seeing the lowest sentiment for Ethereum since 2017 before adding:

“In my opinion, people are in such disbelief that they forget how quickly ETH can go up once it starts moving.”

“Right now, ETH is approaching its biggest support line since its inception,” they said, before adding: “This is not the time to be bearish.”

Half my feed is ETH FUD right now.

— antiprosynthesis.eth ⟠ (@antiprosynth) September 15, 2024

ETH Price Outlook

On September 16, industry observer Colin Wu informed that an “old whale” that received 16,636 ETH from ShapeShift at $5.23 per coin in February 2016 has now started selling.

This has added to the negative sentiment that has sent ETH down 6% on the day, leaving the asset at an intraday low of $2,260 during Monday morning trading in Asia.

Ethereum is trading at its lowest level since January, but there is solid support here, which may remain until general market sentiment improves.

Even big name analysts were piling on the ETH FUD:

$ETH

How it started How it goes pic.twitter.com/PdLawNI2yT

— _Chess and checkmate ⚡☢️️ (@_Escacmatey_) September 16, 2024

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