Ethereum’s recent performance against Bitcoin has raised concerns among traders and investors. The bullish divergence that was previously observed has now been invalidated, with the ETH/BTC price chart signaling weakness. As Ethereum approaches the 0.04 BTC level, there is a possibility of further decline if Bitcoin continues to strengthen towards the $61k-$62k range.
One of the key indicators of Ethereum’s weakness is the lack of a solid support level, making it vulnerable to further downside. The ETH/BTC Relative Strength Index (RSI) also points towards a potential reversal, with the price action declining while the RSI forms higher lows.
Moreover, the decreasing trading volume for Ethereum suggests that it may soon dip below the 0.04 BTC level. Institutional selling pressure is also mounting, with major global institutions offloading their Ethereum holdings. For instance, Metalpha recently deposited a significant amount of ETH into Binance, contributing to a total deposit of 62,588 ETH worth $145.1 million over the last six days.
In addition to institutional selling, the decline in Futures trading volume on the Chicago Mercantile Exchange (CME) further adds to Ethereum’s bearish outlook. The trading volume fell by 28.7% to $14.8 billion in August, marking its lowest level since 2023. This, combined with negative net cumulative flows in Ethereum ETFs and selling pressure from the Ethereum Foundation, suggests a continued downward trend for ETH.
Crowd and smart money sentiment also indicate bearishness for Ethereum in the current market environment. Both retail traders and institutional investors align on the bearish outlook for ETH, suggesting that a price recovery may be delayed until market dynamics shift or a significant catalyst emerges.
In conclusion, Ethereum is expected to remain weak against Bitcoin until broader crypto market conditions improve. Traders and investors should exercise caution and closely monitor market developments to navigate the current challenging environment.
