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ETH/BTC drops below a 3-year low, as Ethereum continues to slump against Bitcoin, with Michaël van de Poppe highlighting a potential support zone.
Ethereum’s exchange rate against Bitcoin has experienced a significant decline, recently dipping below 0.037 on October 25—its lowest level since April 15, 2021. Market data shows a 30% drop in the ETH/BTC rate since July 1 this year, reflecting a major downturn in Ethereum’s performance compared to Bitcoin.
Analysis Shows Key Support Levels
Michaël van de Poppe, CEO of MN Consultancy, has observed this bearish trend in the ETH/BTC pair, calling a capitulation on Ethereum. His analysis points to a potential support zone at the 0.035 BTC level, where buying interest may emerge.
Capitulation on $ETH!
The next level of support is at the 0.035 area.
Let's see what the markets will bring once Ethereum hits that level. pic.twitter.com/kU5bseRckY
— Michaël van de Poppe (@CryptoMichNL) October 25, 2024
A smaller support zone near the 0.038 BTC level could provide temporary relief before Ethereum tests its primary support area.
Additionally, the Relative Strength Index (RSI) is in the oversold zone, indicating the possibility of a price reversal or bounce for ETH/BTC. However, this would require renewed strength from the Ethereum bulls.
Long-Term Perspectives
While the broader market narrative shows waning interest in Ethereum, some analysts, like the pseudonymous Moustache, view the ongoing ETH/BTC decline as an opportunity.
According to him, the ETH/BTC pair is approaching a trend line that has persisted since 2015, which suggests potential for altcoin strength if historical patterns hold. Position trader Bob Loukas echoed a more critical yet balanced perspective.
Loukas suggested that Ethereum’s decline mirrors current shifts in economic activity within the blockchain ecosystem, with user demand moving towards other platforms. He noted that Ethereum’s value may be adjusting to emerging competition.
He also believes the rising prominence of Ethereum’s Layer 2 solutions could be a potential driver for its recovery. However, questions remain about whether real-world use cases can sustain valuations at the expected pace.
Ethereum Lags Behind Other Altcoins Too
Meanwhile, the Ethereum downtrend has coincided with the rising performance of competing assets such as Solana. Since October 22, Solana has demonstrated a consistent upward trend, showing gains in both price and trading volume.
This trend has sparked Solana to reach a new high of approximately 0.0697 ETH. The contrast in momentum suggests that investors may be rotating towards altcoins perceived to offer better growth prospects, contributing to Ethereum’s weakening performance relative to other cryptos in the market.