Ethereum

bullish

Bitcoin

Foundation

Optimism

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Ethereum (ETH) is showing signs of weakness against Bitcoin (BTC), with its bullish divergence invalidated.</li>
 <li>Global institutions are selling off their Ethereum holdings, contributing to the cryptocurrency’s bearish trend.</li>
</ul>
<p>Ethereum (ETH) appears to be underperforming against <a href="https://coineagle.com/price/bitcoin/" rel="noopener noreferrer nofollow">Bitcoin (BTC)</a>. The ETH/BTC price action chart is deeply red, indicating that Ethereum’s bullish divergence has been invalidated as it nears the 0.04 BTC level.</p>
<p>If Bitcoin continues to surge towards the $61k-$62k range after reclaiming $57k, Ethereum may experience further decline. Currently, Ethereum lacks a robust support level, and traders are advised to wait for improved market conditions before anticipating any significant rebound.</p>
<h2 id="ethereum-s-relative-strength-index-and-trading-volume">Ethereum’s Relative Strength Index and Trading Volume</h2>
<p>The ETH/BTC Relative Strength Index (RSI) underscores this divergence, with price action decreasing while the RSI forms higher lows, hinting at a potential reversal. The declining trading volume also suggests that Ethereum may soon dip below the 0.04 BTC level. If Bitcoin weakens, this could provide an opportunity for Ethereum to reverse its trend. However, until there’s evidence to the contrary, Ethereum’s bearish trend is expected to persist.</p>
<h2 id="institutions-selling-off-ethereum">Institutions Selling Off Ethereum</h2>
<p>Major global institutions are reportedly selling off their Ethereum holdings. For instance, Metalpha recently deposited 6,999 ETH, valued at $16.4 million, into <a href="https://coineagle.com/exchange/binance/" rel="noopener noreferrer nofollow">Binance</a>, contributing to their total deposits of 62,588 ETH worth $145.1 million over the past six days.</p>
<p>Metalpha’s remaining Ethereum holdings now stand at just 23.5k ETH, worth $55 million. The company has also liquidated its Layer 2 tokens such as Optimism (OP), while also reducing its staked ETH (stETH) holdings to 1,907 stETH.</p>
<p>Ethereum’s weakness against Bitcoin is likely to continue due to a decrease in Futures trading volume on the Chicago Mercantile Exchange (CME). In August, it fell by 28.7% to $14.8 billion, marking its lowest level since 2023.</p>
<p>Ethereum’s price year-to-date is also in the negative, with its exchange-traded funds (ETFs) recording negative net cumulative flows. The Ethereum Foundation is also reportedly selling Ethereum, adding further pressure on the price. This suggests that Ethereum may continue to decline before potentially rebounding, possibly in Q4 2024.</p>
<p>Finally, both retail traders and institutional investors agree that Ethereum remains bearish in the current market environment. This consensus between small and large market players suggests that Ethereum’s downtrend may persist until market dynamics change or a significant catalyst emerges to support a price recovery.</p>

Unraveling the Severity of Ethereum’s Latest Slump Against Bitcoin

Table of Contents

CoinEagle.com

Other articles published on Sep 13, 2024

Bitcoin (BTC) is Surging: The $60,000 Threshold is Being Challenged – Here’s Why It’s Going Up

Standard Chartered: Bitcoin to $125K with Trump, $75K with Harris

Starknet Voters Give Final Nod to Implement Mainnet Token Staking

Bitcoin ETFs See $39M Inflow, Ethereum ETFs Face $20M Outflow on 12th September

What is Ethervista?

Kalshi Political Prediction Markets Halted Amid CFTC Appeal

Join our free newsletter for daily crypto updates!