- The ETH/BTC dip highlighted ETH’s extended weakness against Bitcoin, as the latter’s dominance soared higher.
Low address activity underscores caution and declining organic demand, but could things change soon?
As a seasoned researcher with a knack for deciphering market trends and a keen eye for spotting opportunities, I find myself intrigued by the recent developments in the ETH/BTC pair. The extended weakness of ETH against Bitcoin and the soaring dominance of BTC could indeed be indicative of a pending altcoin season.
The price of Ethereum (ETH) has recently dipped to its lowest point relative to Bitcoin (BTC) since April 2021. However, this dip might be an indicator that Ethereum and the broader altcoin market are preparing for a significant surge, potentially marking the beginning of what could become the altcoin season.
In the past 24 hours, the ETH/BTC exchange rate reached a bottom of approximately 0.0387. This is the lowest point this currency pair has touched since April of last year.
It emphasizes that Ethereum’s struggle against Bitcoin continues to widen, and the delay in the anticipated ‘altcoin season’ persists.
Concurrently, the current dip in the ETH/BTC correlation indicates a prolonged divergence. This could suggest that a significant shift or reversal is imminent, according to certain market analysts.
Meanwhile, Bitcoin dominance just hit a new YTD high at 58.07% in the last 24 hours.
Furthermore, the dominance of Bitcoin seems to indicate a possible turnaround, as it exhibits a divergent pattern.
It seems this scenario implies a significant shift for it, opening up possibilities for abundance of funds to move towards alternative cryptocurrencies (altcoins). If that happens, Ethereum could potentially reap the benefits.
ETH’s sell pressure and demand
To this point, Ethereum (ETH) hasn’t shown substantial withdrawals. For instance, the amount held in exchange reserves significantly shifted on September 11th, following the attainment of a new year-to-date low of 18.52 million coins.
At the time of writing, there were approximately 18.79 million Ethereum held in reserve for trading, which indicated a renewed surge of selling pressure that reappeared over the weekend.
At the moment of reporting, the value of the cryptocurrency stood at approximately $2,298. This was just a bit lower than its initial price from the Monday of the week before, indicating that it had essentially lost its weekly increases in value.
Analyzing ETH‘s on-chain transactions in more detail showed a significant decrease in the number of active addresses to approximately 262,786. This is the lowest level of activity the network has seen since mid-January 2024.
The sluggishness in the market indicates a heightened sense of doubt due to upcoming crucial decisions being made. Yet, it’s worth noting that during these dips, there have been indications of Ethereum being stockpiled.
Read Ethereum’s [ETH] Price Prediction 2024–2025
To give an example, historical data shows that the number of coins in whale wallets increased from approximately 58.44 million on August 13th to about 8.47 million on September 15th.
During the given timeframe, the number of retail addresses for these digital assets increased slightly, from approximately 64.94 million to 64.97 million. This trend suggests that both large-scale investors (whales) and individual traders (retail traders) are actively capitalizing on reduced prices in the market.
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2024-09-16 20:07