According to Cointelegraph: The ETH/BTC trading pair has plunged to 0.03496, its lowest point since March 2021, causing Ether traders to anticipate further downside. Alex Thorn, head of research at Galaxy, highlighted this decline in a November 5 post on X, while market analysts express doubts about a reversal anytime soon. With the current ratio at multi-year lows, Ether appears to be struggling to keep pace with Bitcoin’s recent bullish momentum.
Analysts Skeptical of ETH/BTC Rebound
Market analyst Zach Voell cautions that there’s “no reversal in sight” for the ETH/BTC pair, advising traders to focus on the ratio’s persistent decline. The current market environment has raised concerns that Ethereum may continue to underperform against Bitcoin, particularly with the U.S. presidential election fueling additional volatility. Colin Talks Crypto echoed this sentiment, predicting that the ratio will drop further in the near term.
Potential for Historical Rebound Amid Low Levels
Historically, the ETH/BTC pair rebounded strongly from similar lows, as seen in March 2021 when the ratio surged from 0.035 to 0.077 within two months, alongside a 120% increase in Ether’s price. Some traders, like crypto commentator Benaiah, expect a similar recovery this time, with an optimistic outlook for an “epic” price rally. However, such a rebound would require Ethereum to outperform Bitcoin in the coming months.
U.S. Election and Bitcoin Rally Could Pressure ETH Further
As the U.S. election outcome looms, many traders predict Bitcoin could see substantial gains, which may further weigh on the ETH/BTC pair. For the ratio to climb, Ether would need to experience a stronger rally than Bitcoin, which may be challenging in a market favoring BTC.
Market Activity and Ether’s Potential Volatility
According to CryptoQuant contributor Amr Taha, an inflow of 82,000 ETH into derivatives exchanges could indicate increased market activity and potential price volatility for Ether. This NetFlow spike suggests the possibility of a price correction as traders position themselves around election-related market moves.
Bitfinex analysts also foresee heightened volatility following the U.S. election, which may drive substantial price movements in both Bitcoin and Ether. This volatility could either fuel a recovery for ETH or indicate a “much deeper correction” for Bitcoin in the short term, impacting the entire crypto market landscape.
With the ETH/BTC pair at a critical juncture, traders are closely watching how Ethereum’s performance will align with Bitcoin’s in a highly volatile market environment.
