FameEX Hot Topics | Ethereum Under Pressure as ETH Breaks 8-Year Streak Against Bitcoin

Ethereum’s native token, Ether (ETH), has fallen below a crucial long-standing support level against Bitcoin (BTC), sparking concern among market analysts. The ETH/BTC pair recently broke through an ascending trendline that has historically marked market bottoms since 2016. This trendline supported significant rallies, including a 300% surge from December 2020 to December 2021 and an 1,800% jump between January and May 2017.

In November 2024, Ethereum bulls were unable to defend this key support level, resulting in a 15% drop in the ETH/BTC pair. This decline was accompanied by increased trading volume, a clear indicator of strong selling pressure. Such a scenario often signals further potential downside in the coming weeks. Tuur Demeester, founder of Bitcoin hedge fund Adamant Capital, summarized the sentiment by stating, “Ethereum is dying a slow death,” underscoring the challenges Ethereum is currently facing.

One major contributor to Ethereum’s underperformance is the rise of spot Bitcoin exchange-traded funds (ETFs) in the U.S., which have gained substantial traction among retail and institutional investors. Conversely, Ethereum’s own spot ETF offerings have struggled to achieve similar success. Furthermore, Bitcoin’s fourth halving event in April 2024 has enhanced its appeal, prompting capital to flow from Ethereum into Bitcoin as investors seek stronger returns.

Additionally, Ethereum was notably absent from key narratives during Donald Trump’s presidential campaign, which included a proposal to establish Bitcoin as a strategic reserve asset for the U.S. This lack of visibility has contributed to a decline in Ethereum’s market dominance (ETH.D), now at its lowest level since April 2021.

Technical analysis indicates that ETH/BTC has entered a breakdown phase within an inverse cup-and-handle (IC&H) pattern. Should this scenario fully play out, ETH/BTC could drop to a key support level of 0.017 BTC, last observed during the August 2019 to January 2020 period. This represents a potential 50% decline from current prices, highlighting Ethereum’s ongoing struggles to maintain its standing in the competitive crypto market.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.