Ether, the second largest cryptocurrency, has fallen more than 20% against Bitcoin in the past six weeks. With EthBTC remaining near a two-month low, sellers are pushing to stabilize the price below $3,400. This pressure led to a significant decline in an important on-chain metric, indicating further declines in its price.
Ethereum’s decline may be short-lived
Ethereum price has been experiencing mixed market reactions with both buyers and sellers facing liquidations. According to Coinglass, Ethereum saw a total of $35 million in qualifiers over the past 24 hours, with $14 million from buyers and $21 million from sellers.
Data from IntotheBlock indicates that Ethereum’s volatility has decreased over the past 30 days. A significant drop in volatility could be a negative sign for Ethereum as it indicates less trading activity, which could reduce the chances of the price moving above key resistance levels. Currently, the volatility rate is 42.6%.
At press time, the ETH/BTC ratio, which refers to the value of Ether relative to Bitcoin, stands at 0.03194 according to TradingView data. This percentage is down 19% since December 5, when Bitcoin hit $100,000 for the first time.
However, in the previous bull market cycle, the ETH/BTC ratio hit a low of around 0.03 in March 2021 and then rose to 0.077 within a couple of months. During this time, the price of ether rose by 110%, reaching $3,817.
Read Also: Ethereum Price Prediction 2025, 2026 – 2030: Can ETH Price Reach $5K?
With Bitcoin adoption now growing, weighting on Ethereum would be a mistake. Some believe that while many are focused on what US President-elect Donald Trump might do with Bitcoin during his term, ether could indirectly benefit from broader Bitcoin adoption.
Apollo co-founder Thomas Fuhrer stated that if the Bitcoin Strategic Reserve is implemented, it could push the price of Bitcoin to $1 million this cycle. He also noted that this would be positive for ether, suggesting that the $4,000 price target is achievable.
What’s next for ETH price?
Ethereum price has been climbing sharply, surpassing previous resistance levels and is now trying to squeeze above the direct Fibonacci channel. However, it is facing some selling pressure around the falling resistance line, posing a major challenge for buyers. Currently, Ethereum is trading at $3,343, increasing by 1.01% in the past 24 hours.
The ETH/USDT trading pair is hovering just below $3,430, which could represent a significant hurdle. If it can maintain this level above, it could be beneficial for buyers, perhaps driving the price to $3,730, perhaps even $4,000.
Conversely, if the price falls below the EMA20 trend line on the 1-hour chart, sellers can push it to around $3,200. However, the Relative Strength Index (RSI) at 52 indicates that there could be a rise soon, as it indicates continued buying interest.
