The post Ethereum Vs Bitcoin Now Trades At 15-Month Low! Are Bulls Losing Confidence In ETH Price? appeared first on Coinpedia Fintech News
Last week, the market maintained a stable condition, presenting investors with chances to accumulate more following a minor sell-off. This morning started with a buying demand, particularly for leading assets: Bitcoin and Ethereum, as they began to recapture their previous strength. However, despite the ongoing uptick in Ethereum’s price, there’s potential for investor confidence to decline, given that the ETHBTC ratio is hitting its lowest in 15 months – a level not seen since the Ethereum’s Proof of Stake (PoS) transition.
Buyers’ Confidence Weakens On ETH Price
Setting aside the recent pump and dump game in Bitcoin’s value due to inaccurate news from Cointelegraph about the SEC approving Blackrock’s spot BTC ETF, the ETHBTC ratio is hovering at its lowest in 15 months. This represents the most significant dip since the event of Ethereum’s transition to Proof of Stake (PoS) last year.
The ETHBTC chart has been on a notable downtrend in recent months, indicating Ethereum’s lost traction compared to Bitcoin. The ratio currently stands at 0.056, suggesting a growing investor inclination towards Bitcoin over Ethereum for massive returns.
For example, Bitcoin-focused investment funds have seen an influx of $246 million from the beginning of the year until October 6, as per data from CoinShares. Conversely, during this timeframe, Ethereum funds have experienced a decline, with capital outflows amounting to $104 million.
Following the recent volatility in the ETH price, over $20 million worth of positions were liquidated and 50% of them were in long, suggesting an increased fear following Cointelegraph’s fake news. Moreover, there’s a decreased whale interest as the large transactions dropped from 1.3 million ETH to just 600K ETH today.
What’s Next For ETH Price?
This analysis is made without considering the recent pump and dump situation on ETH price.
Over the last 24 hours, ETH price experienced a bullish push as it attempted to surge above $1,600. However, the increasing selling pressure from STHs is creating a barrier, strengthening the immediate resistance level. As of writing, ETH price trades at $1,578, surging over 1.6% from yesterday’s rate.
The Relative Strength Index (RSI) is flashing signs of a positive divergence, suggesting that the bearish momentum might be losing strength. The bulls are attempting to send the price towards the EMA200 trend line, where the bears are expected to put up a robust defense.
Should the price sharply decline from the 20-day Exponential Moving Average (EMA), it would indicate that the bears still maintain control. In such a scenario, the ETH price could potentially decline below $1,521.
To avoid this decline, the bulls must push the price above the moving averages. This could lead the price to climb to $1,660, although at this point, the bulls may once again encounter strong selling pressure from the bears.