Ethereum Tracks Bitcoin’s Downtrend, Analyst Predicts Possible Rebound After Collapse

12

In the turbulent world of cryptocurrency, Ethereum’s trajectory has been closely shadowing that of Bitcoin, its more renowned counterpart. Recently, Bitcoin’s gradual descent to more moderate valuations has incurred a noticeable ripple effect on Ethereum’s fortunes. However, keen observers of the crypto landscape have noted an interesting departure in Ethereum’s fundamental bearings compared to Bitcoin—increasingly bearish undercurrents that some believe will pull Ethereum’s valuation further down.

A certain crypto market analyst, known in the digital community as Shin Forex, recently shared a detailed analysis of Ethereum’s fluctuating fortunes on TradingView. His scrutiny honed in specifically on the Ethereum-to-Bitcoin (ETH/BTC) ratio, which revealed some worrying trends in Ethereum’s performance, painting a rather grim landscape for the second largest cryptocurrency by market capitalisation.

Follow us on Google News! ✔️


Shin Forex’s examination illuminates a clear trend: the liquidity in Ethereum has been steadily and precariously declining. Currency that would typically find its way towards alternative coins such as Ethereum, is now being diverted towards Bitcoin. This shift in investment flow indicates a declining interest in Ethereum and has ultimately left it bereft of a solid financial foundation.

The seasoned crypto analyst further detailed that the ETH/BTC ratio has plunged below its safety net of 0.05. Shin Forex emphasised the potential repercussions of this drop by harking back to the two previous market cycles in 2016 and 2019 when Ethereum breached its support level—a move that was invariably followed by a substantial nosedive in price before the coin could manage to regain its position.

Shin Forex anticipates a repeat of this pattern and is preparing for ETH/BTC to sink below 0.04. Conjecturing the dire consequences of such an event, he projected a price target for Ethereum of roughly $2,500—an unprecedented spiral downward.

However, this grim short-term prognosis does not spell a permanent doom for Ethereum. Indeed, a broader perspective on the vicissitudes of the coin’s price offers glimmers of hope for its future performance.

Shin Forex’s analysis of the previous crashes reveals that, despite the initial tumult, these turns have often set the stage for a fresh infusion of money into Ethereum. For instance, post the November 2016 crash, Ethereum enjoyed a robust recovery within a short period, soaring to a remarkable new high. A subsequent crash in 2019 likewise foresaw a market rally, albeit advancing at a slower tempo.

Therefore, while an impending Ethereum crash looks inevitable, recovery doesn’t seem farfetched. If precedent holds true, Ethereum might even herald the advent of another massive rally.

However, the present situation remains ominously bearish. The market’s unseen manipulators, colloquially termed ‘bears’, have successfully wrestled Ethereum’s price below the $3,000 mark. At the time of reporting, Ethereum is trading at $2,975, having suffered a marginal decline of 0.36% on the day, as per data from Coinmarketcap.

Certainly, the echo of Ethereum’s fall resounds in all corners of the crypto world, its reverberations causing concern and anticipation in equal measure. Only time will tell what the next chapter holds for this fluctuating force in the realm of cryptocurrency.