Ethereum Price Faces Continued Downtrend: Analyst Insights
Ethereum (ETH) is currently in a downtrend against Bitcoin (BTC), exhibiting oversold conditions without signs of recovery. Historical trends suggest continued declines, marked by significant losses in market pairs and negative onchain data. Analysts predict a potential 15% decrease in the ETH/BTC pair, emphasizing the need for cautious investment strategies amid ongoing bearish momentum.
Ethereum’s native cryptocurrency, Ether (ETH), is currently experiencing a significant decline, lacking signs of stabilization. Despite multiple oversold instances against Bitcoin (BTC), ETH continues to struggle without establishing a clear bottom price. The market’s current structure suggests the potential for continued downward movement from Q2 to Q3 2025, mirroring previous trends.
The relative strength index (RSI) for Ether on a three-day timeframe remains below the critical level of 30, indicative of a possible rebound. However, historical analysis reveals that prior oversold conditions have not resulted in definitive market recoveries, as subsequent selling pressure has frequently ensued. Since mid-2024, the ETH/BTC trading pair has seen repeated breakdowns, with significant losses recorded, and both the 50-day and 200-day exponential moving averages (EMAs) confirm a trend of bearish sentiment.
Market analyst @CarpeNoctom emphasized that the ETH/BTC trading pair has not established a bullish divergence on the weekly chart, despite the indicators showing potential upward movement. Additionally, the persistent downturn of the ETH/BTC pair is underscored by ongoing outflows observed in U.S.-based spot Ether ETFs and negative onchain metrics. In March, net investment inflows into these ETFs dropped by 9.8%, amounting to $2.54 billion, contrasting sharply with Bitcoin ETFs.
Ethereum’s gas fees, a measure of network activity, have plummeted to 1.12 GWEI, approximately 50 times lower than the previous year’s figures. This decline reflects diminishing on-chain activity, as noted by data platform Nansen, which cited a shift towards alternative platforms like Solana and Layer 2 solutions. As such, the analysts maintain a bearish outlook on ETH, considering its poor risk/reward status relative to Bitcoin and other altcoins.
Future volume data emphasizes the lack of demand for ETH in relation to Bitcoin, as Bitcoin futures volume has surged by 32% since late February, reaching $57 billion compared to ETH’s stagnant trading metrics. The ETH/BTC pair is currently exhibiting a bear pennant formation on the daily chart, foreshadowing a potential decline. A typical resolution of this pattern suggests a drop below the lower trendline, projecting a target of 0.01968 BTC, reflecting a 15% decrease from present levels.
Despite forecasts of continued downside risk for Ether, analysts propose that bullish reversal could occur should the ETH/BTC pair break above the pennant’s upper resistance line and convert the 50-day EMA into a support level. Readers must note that this article does not offer investment advice, and any trading decisions should be made with thorough research and awareness of inherent risks.
The current bearish trend of Ethereum (ETH) against Bitcoin (BTC) reveals ongoing vulnerabilities in its market dynamics. With repeated oversold conditions failing to signal recovery, analysts remain cautious of further declines, projecting a possible 15% downturn. Contributing factors such as reduced ETF inflows and diminishing network activity underscore the challenging outlook for ETH. Investors are advised to conduct independent research before making financial decisions in this volatile environment.
Original Source: cointelegraph.com
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