Ether traders eye more downside amid ETH/BTC tapping 'new multi-year lows'
Ether traders are bracing for more price volatility after the ETH/BTC ratio — a prominent trading pair among crypto market participants — plunged even further below its lowest point in three years.
“ETHBTC with new multi-year lows 0.03496,” Galaxy head of research Alex Thorn noted in a Nov. 5 X post .
Analysts are doubtful of a ‘reversal’ on the horizon
Market analyst Zach Voell said there is “no reversal in sight” for the trading pair.
“Don’t let the election distract you from the fact that ETHBTC continues plummeting to new lows,” Voell said.
Crypto commentator Colin Talks Crypto added , “ETH/BTC is going to drop more.”
The Ether ( ETH ) to Bitcoin ( BTC ) trading pair is at a ratio of about 0.035, the lowest it has been since March 2021, according to TradingView data .
BTC/ETH ratio is down 1.13% over the past 24 hours. Source: TradingView
Still, if history repeats, it may not remain that way long. When the pair was last at that level in March 2021, it rallied. Within two months of that low, by May 2021, the ratio had surged to 0.077, alongside a 120% increase in Ether’s price, which reached $3,928.
The historical data has some traders expecting a stronger rebound this time around.
“The coming pump will be epic,” crypto commentator Benaiah said in a Nov. 5 post to X.
Further price downside looms
Still, with the United States presidential election results looming, most traders are anticipating an outsized increase in Bitcoin’s price by the end of the year. This would lower the ETH/BTC pair even further if Ether doesn’t see similar gains.
For the ETH/BTC ratio to increase, Ether price action needs to start outperforming that of Bitcoin.
At the time of publication, Ether was trading at $2,445.
Meanwhile, on Nov. 5, CryptoQuant contributor Amr Taha pointed out that 82,000 ETH, worth about $200.49 million, went into derivative crypto exchanges, a signal he says may lead to “a downturn or increased volatility.”
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“The latest spike in NetFlow could signal another period of heightened market activity, potentially a price correction or a sharp move based on trader positioning,” Taha said.
However, analysts are skeptical of how the overall crypto market will play out following the US presidential election.
Bitfinex analysts recently pointed out that a massive spike in volatility is still expected following the conclusion of the election, which may “fuel big moves” or be a warning sign of a “much deeper correction for Bitcoin on the lower timeframes.”
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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