The ETH/BTC ratio has hit its lowest level since May 2020 at 0.022, indicating Ethereum’s underperformance compared to Bitcoin. ETH trades at $1,875, with a market cap of $226.17 billion, having declined over 30% in the past month. Analysts caution that ETH may struggle to maintain valuation against Bitcoin, although some optimistic outlooks exist due to upcoming upgrades.

The ETH/BTC trading pair has reached a historic low of 0.022, marking its lowest level since May 2020. This drastic drop indicates that Ethereum is underperforming relative to Bitcoin, which has managed to recover its losses from Monday, while ETH continues to lag similarly to other leading altcoins.

This decline in the ETH/BTC ratio signals several potential consequences for Ethereum’s price trajectory. A decreased ratio often results in heightened selling pressure, prompting traders to consider reallocating their investments into alternative cryptocurrencies. Moreover, Ethereum’s price has fallen below a crucial support level, ranging between $2,100 to $2,000, indicating a possibility for further declines if the market does not experience a rebound.

Currently, according to Coinmarketcap data, Ethereum is trading at $1,875 with a market capitalization of $226.17 billion, reflecting a decline of over 30% over the past month. In the meantime, Bitcoin’s market dominance has increased to 61.2%, demonstrating a shift in investor preference toward Bitcoin over Ethereum.

Despite a cautious market sentiment regarding Ethereum, analysts suggest that the cryptocurrency may continue to struggle in maintaining its valuation against Bitcoin and other altcoins. Nevertheless, some investors express optimism for Ethereum’s long-term outlook, citing fundamental changes such as the forthcoming Pectra upgrade and the introduction of smart wallets, which could drive a resurgence.

However, it is essential to monitor the ETH/BTC ratio closely moving forward, as it serves as an indicator of market sentiment and the likelihood of capital moving from Ethereum to Bitcoin.

In summary, the ETH/BTC trading pair has fallen to its lowest value since May 2020, suggesting Ethereum is underperforming against Bitcoin. This decline could lead to increased selling pressure and further price drops, especially below key support levels. While some investors remain hopeful due to future upgrades, the immediate focus should be on the ETH/BTC ratio, which reflects market sentiment and capital movement trends.

Original Source: www.cryptotimes.io

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