Quick Summary
- The ratio of ETH/BTC decreases to 0.01767, the lowest since January 2020
- The decline of Ethereum in 2021 compared to BTC of 67%
- Bitcoin 34% higher with preference as a store of value
- Falling fees, DeFi use, ethereum activity and network
- The popularity of Solana and BNB chain
- Ethereum cost of around $1,587 with essential support at $1,500
Bitcoin Realizes Ethereum’s Bane
Ethereum is settling down in its fight against Bitcoin. The ETH/BTC ratio has nosedived to 0.01767 which has not been experienced since more than five years ago. Bitcoin has experienced a growth of 34 percent within the last year compared to the 50 percent depreciation of Ethereum, reflecting a strong market preference of BTC.
What is the Slump?
Having such an upgrading as the Dencun, the main metrics of Ethereum continue to stumble:
- Fees on the network are at several-year lows
- Action in DeFi is decelerating
- Liquidity is flowing to Solana (+12%) and BNB Chain (+1.5%)
- Layers-2 solution, such as Base and Arbitrum (+1%), can lessen mainnet activity in Ethereum
This has exerted much pressure on the mood of investors.
Site: Will ETH Support $1,500?
Having a current price of approximately 1587, ETH is being pressured at both ends:
- Upside risk: It is possible that an upward reclamation of 1650 and an upward break above 1700 will move it towards 1850
- Downside risk: In case of dropping $1,500 support it may lead to breakdown to 1,440
The RSI stands at a level a little above 40, which is an indicator of indecision. Ethereum will be in a bearish period without a new source of catalyst.
Final Thoughts
Even though it has been an equitable corner of the crypto world, the declining performance of Ethereum concerning the rival Bitcoin is of grave concern. Can ETH recover, or shall faster chains keep stealing the show?