Ethereum’s latest downtrend – Examining how weak ETH really is against BTC
The post Ethereum’s latest downtrend – Examining how weak ETH really is against BTC appeared on BitcoinEthereumNews.com.
Ethereum’s bullish divergence has been invalidated Institutions are now selling ETH, with trading volume decreasing too Ethereum (ETH), at press time, seemed to be showing some weakness against Bitcoin (BTC), with the ETH/BTC price action chart deep in the red. In fact, the bullish divergence for ETH looked invalidated as it approached the 0.04 BTC level. If Bitcoin continues to gain momentum towards the $61k-$62k range after reclaiming $57k, ETH can be expected to drop further. Currently, ETH lacks a solid support level, and traders will need to wait for better market conditions before any significant rebound. Now, the ongoing inflows might help ETH regain stability. However, for now, it remains weaker than Bitcoin. The ETH/BTC Relative Strength Index (RSI) highlighted this divergence, with the price action declining while the RSI formed higher lows – A sign of a potential reversal. Source: TradingView The decreasing volume also signals that ETH may soon dip below the 0.04 BTC level. If Bitcoin weakens, this could present a chance for ETH to reverse. Until confirmed otherwise though, the bearish trend for ETH will remain the most likely scenario. Global institutions are selling ETH That’s not all though, with major global institutions now selling off their Ethereum holdings, as per Lookonchain on X. For instance, Metalpha recently deposited 6,999 ETH, valued at $16.4 million, into Binance, contributing to their total deposits of 62,588 ETH worth $145.1 million over the last six days. Their remaining ETH holdings now stand at just 23.5k ETH, worth $55 million. Metalpha has also liquidated its Layer 2 tokens such as Optimism (OP), while also reducing its staked ETH (stETH) holdings to 1,907 stETH. Source: Arkham Ethereum CME trading volume Additionally, ETH is likely to remain weak against BTC due to declining Futures trading volume on the Chicago Mercantile Exchange…
Filed under: News - @ September 13, 2024 8:19 pm