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Este artículo también está disponible en español. Today’s Ethereum-Bitcoin (ETH/BTC) trading pair slid below 0.04, a level last seen in April 2021. The declining ETH/BTC ratio could have multiple implications for the wider altcoin market. Altcoins Might Suffer Due To Weak Ethereum One of the key indicators to gauge the resiliency of the altcoin market is the ETH/BTC ratio. The ratio essentially tracks the relative price strength of Ethereum against Bitcoin and is widely considered a metric that could indicate the future potential price action of altcoins. As of September 16, 2024, the ETH/BTC ratio sits at 0.039, a level it last touched 3 years ago in April 2021. In fact, after hitting a high of 0.088 in December 2021, the ETH/BTC ratio has been on a long-lasting decline, barring the occasional dead cat bounce, before further eroding in value. Source: ETHBTC on TradingView.com Related Reading Regarding altcoin price action, a surging ETH/BTC ratio indicates that Ethereum is performing well against Bitcoin. Conversely, a declining ratio suggests that Bitcoin outperforms Ethereum and other altcoins, which could trigger a shift in confidence away from Ethereum toward Bitcoin. As a result, the wider crypto market might witness a sell-off in altcoins as capital seeks more stable and better-performing assets. Currently, Bitcoin dominance (BTC.D) sits at 57.78%, and it can be observed that the metric has been on a steady uptrend since November 2022. An increase in BTC.D further solidifies a weakening altcoin market, hinting that liquidity is exiting small-cap tokens, which might lead to volatile price action and quick price drawdowns. Source: BTC Dominance on TradingView.com It’s worth highlighting that the US Securities and Exchange Commission’s (SEC) approval of Ethereum exchange-traded-funds (ETFs) didn’t quite turn out to be as significant an event for ETH price as it did for BTC. Data from…

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Filed under: News - @ September 17, 2024 8:20 am