Ethereum price is struggling to gain momentum as the ETH/BTC pair underperforms and hits new lows, causing concern among analysts.
Ethereum price is showing slight signs of recovery today, hovering around $2,375 at the time of writing. This represents an increase of 1.06% in the past 24 hours, while the cryptocurrency has seen a steep decline of 10.47% in the past week.
Amid these fluctuations, significant underperformance of the ETH/BTC trading pair has been noted, attracting significant attention from market watchers.
Decrease in performance of ETH/BTC pair
In a recent analysis, Michaël van de Poppe, founder of MN Consultancy, pointed out that the ETH/BTC pair has once again been rejected at an important level, returning to its lows. As a result, Van de Poppe explained Ethereum’s performance against Bitcoin was the “most disgusting” chart he had seen in a while.
He expressed frustration that despite Ethereum’s fundamental growth, it has struggled to gather momentum to outpace Bitcoin. With the price of Ethereum rekindling its all-time lows during the latest market correction, it has raised questions about what will happen next, especially if Ethereum tests the bottom.
In particular, the attached chart shows that the price of Ethereum relative to Bitcoin has fallen by 30% in recent months. At the time of his post, the pair was trading at around 0.03883 BTC. However, according to updated records, it has fallen further to 0.03877 BTC.
Nevertheless, Van de Poppe identified a significant rejection at the 0.05151 BTC level, pointing out that this is important for a potential trend reversal.
Michael van de Poppe’s charts
Selling pressure suppresses Ethereum
In particular, Ethereum’s challenges in the market are highlighted by a notable increase in large sell-offs by early investors.
A popular whale wallet that has been dormant for two years began offloading large amounts of ETH in October. Last week, the wallet sold 19,000 ETH (worth approximately $47.54 million).
Originally, this wallet received 150,000 ETH during Ethereum’s new coin offering (ICO) in 2015. At the time, the price per coin was just $0.31. This investment grew from $46,500 to more than $358 million.
Whale buying and selling began on October 1st, with 9,000 ETH sold for over $2,600. The sell-off continued on October 3rd, with an additional 10,000 ETH being offloaded as the price fell to $2,380.
In recent weeks, The Crypto Basic has reported on several examples of Ethereum ICO whales moving millions of dollars for cash after nearly a decade of dormancy. Furthermore, the Ethereum Foundation is also actively selling ETH this year.
Notably, these sales are strategic and often occur during periods of significant ETH price appreciation. These developments may be contributing to Ethereum’s recent performance decline.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. We encourage our readers to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
