The ETH/BTC ratio has entered an oversold territory on the monthly chart, raising concerns among traders and investors. Ethereum price can take an interesting tarjectory from here.
Market analyst Lark Davis pointed out that this is the first time in history that the ETH/BTC RSI has hit oversold. While this trend shows high negative momentum, it also suggests a potential price reversal for Ethereum.
Ethereum Price is Down Against Bitcoin; Key Charts
In a recent X post, Davis posted a chart that shows the current ETH/BTC ratio hovers around 0.02.
Given historical patterns, the analyst suggests that this level may be unsustainable. Historically, extreme oversold conditions often precede periods of mean reversion, potentially setting Ethereum for a bounce.
The ETH/BTC ratio will likely experience improvement if Bitcoin’s price stagnates or drops.
Notably, the ETH/BTC ratio is a metric that reflects the relative value of Ethereum to Bitcoin. A higher ETH/BTC ratio indicates that Ethereum outperforms Bitcoin, while a lower ratio suggests the opposite.
At the moment, Ethereum’s price trades around $2,669, up 1.37% in the last 24 hours.
Ethereum could find minor hurdles at $2,683 and $3,306 if the ongoing recovery picks up steam. This would allow ETH to scale up to $4,000, the next major resistance level to book profits.
Investors can expect the Ethereum price to revisit its all-time high of $4,868. Ethereum could surpass its all-time high to as high as $5,000 in a more bullish case.
ETH’s trading volume has increased by 47.24% to $25.47, indicating potential accumulation by day traders.
Meanwhile, Bitcoin’s price was trading at $96,850, up 1.24% in the last 24 hours. Like Ethereum, the trading volume also surged by 57% to $49 billion.
Ethereum Ecosystem Trend and Pectra
Across the Ethereum ecosystem, the spot ETH Exchange-Traded Funds (ETFs) recently experienced inflows after weeks of persistent outflows.
Notably, the spot ETH ETF products saw a six-day consecutive inflow streak, suggesting that institutional investors are betting on the altcoin.
Market experts consider this a bullish indicator of long-term prospects for Ethereum’s price. The surging inflows coincide with a proposed amendment from Cboe BZX Exchange to list and trade options on spot Ethereum ETF.
In another development, MetaMask recently introduced its new Gas Station feature to tackle failed transactions due to insufficient ETH for gas fees.
Rather than relying solely on ETH, the update allows users to pay gas fees using select tokens.
Amid these developments, Ethereum developers have announced the release date for the Pectra upgrade.
The team said all Core Developers can begin testing Pectra on February 26 on the Holesky testnet. Subsequently, a follow-up test on the network’s Sepolia testnet will be held on March 5.
For clarity, the Ethereum Pectra upgrade aims to enhance the Ethereum network’s speed, scalability, and user experience.
Key Expectations for ETH Price Trend
According to technical analysis, the 50-day Exponential Moving Average (EMA) is set to cross below the 200-day EMA.
This puts Ethereum price closer to facing serious consequences, especially if investors continue selling the asset.
There is still potential for more declines, as indicated by the Relative Strength Index (RSI), currently trading at about 35, indicating an oversold condition.
The post ETH/BTC Oversold on Monthly: Here Are Possible Ethereum Price Paths appeared first on The Coin Republic.
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