Bitcoin Goes to $100K… Ethereum (ETH)/BTC Rate Hits Lowest in 42 Months

The ETH/BTC ratio is an indicator that measures the price performance of Ethereum compared to Bitcoin, and it has reached its lowest point since March 2021. This occurred as Bitcoin briefly reached $98,000. Major cryptocurrencies have risen 7.45% in the past 7 days, but ETH has remained in the same range. Investors are expressing concerns about the future of altcoins. ETH is lagging far behind the upward trend of Bitcoin In February, the ETH/BTC ratio reached a yearly high of 0.060. At that time, there were speculations that Ethereum's price would surpass Bitcoin and validate the altcoin season. However, Bitcoin's price has continued to set new all-time highs. Meanwhile, Ethereum, despite reaching $4,000 at the start of the year, has failed to recover its all-time high. This performance gap may be related to several factors. For example, both cryptocurrencies received ETF approvals this year. However, Bitcoin has seen billions of dollars in inflows, while ETH has been inconsistent in attracting capital. As a result, institutional inflows have propelled Bitcoin to $100,000, and the ETH/BTC ratio has fallen to $0.033, its lowest level in 42 months.

Furthermore, Ethereum's performance gap may be largely due to persistent selling pressure. For example, according to CryptoQuant data, inflows to the top 10 exchanges have increased to 461,901 ETH, which is valued at around $1.5 billion at the time of writing. This surge in exchange inflows reflects large-scale deposits by investors, indicating a heightened willingness to sell. This movement generally increases the supply of ETH on exchanges, raising the potential for price declines. In contrast, low exchange inflows typically indicate that investors are holding onto their assets, which is not the case for ETH currently.

ETH Price Forecast: Potential Price Correction At the time of writing, ETH is trading at $3,317, which is higher than the previous day's close. However, altcoins are still below the Parabolic Stop and Reverse (SAR) indicator. The Parabolic SAR creates a series of dots that track the price movement, with the dots positioned above the price during downtrends and below the price during uptrends. The "flip" of the dots - moving from one side to the other - often signals a potential trend reversal. As shown below, the indicator is above ETH's price, suggesting the cryptocurrency may retrace its recent gains.

In this case, if the ETH/BTC ratio declines, Ethereum's price could drop to $3,083. However, if buying pressure increases, this may not be the case, and Ethereum's price could rise above $3,500 and potentially reach $4,000.