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In the latest ETHBTC News, the weekly ETH/BTC ratio is showing a strong indication of a bearish trend, with the ETHBTC ratio on the verge of death cross, but as retail investors question the meaning, explore this deep-dive into Ether’s underperformance compared to Bitcoin.
It’s that time of the cycle when we all panic over crypto’s technical analysis boogeyman: the death cross.
In trading terms, a death cross occurs when the short-term moving average plunges below the long-term one, hinting at a shift from clear skies to potential bear territory.
Recently, the weekly ETH/BTC ratio indicated a bearish trend close to flashing a death cross, suggesting prolonged underperformance of altcoins compared to Bitcoin.
According to options market data, ETH is expected to underperform in the near term as the ratio dropped nearly -10% so far this year.
Many are hopeful that the upcoming Bitcoin Halving will reverse these bearish indicators in the altcoin markets. Indeed, Ethereum has been down by 6.3% over the last week, currently trading around $3,400.
Ethereum vs. Bitcoin: The Dance of ETHBTC Dominance
(ETHBTC)
Since 2017, the crypto markets have ebbed between Bitcoin’s command and altcoins taking the lead.
A key sign of the altcoin ecosystem has been the ETH/BTC ratio. This year, however, it’s taken a -10% nosedive to 0.049, signaling a change in the air.
The upshot is the short-term price movements for Ethereum and select altcoins have been so bad over the last 50 days that the average from the last 200 days is better.
Singapore’s QCP Capital noticed ETH’s struggle, noting a “critical support level” breach and a downturn driven by a sell-off in ETH calls.
The derivatives exchange Deribit also showed Ether puts (bets on price drops) are outpricing calls (bets on price rises), suggesting a bearish horizon – meanwhile, Bitcoin retains a call bias.
But worse than Ether, despite attempts at rallying, Polkadot’s price remains a shadow of its former self, making a significant recovery an uphill battle.
(DOTUSDT)
With the Relative Strength Index (RSI)—an oscillator that measures the speed and change of price movements—remaining in a bearish zone, DOT faces a death cross on its chart, potentially dragging its price even lower.
The Bottom Line: What Does ETH/BTC Ratio Mean Ahead of Halving?
Ethereum often follows Bitcoin into death cross territory but rarely goes at it alone.
This could signal a shift in the altcoin markets, as markets weigh more heavily into Bitcoin ahead of the April 20 Halving event.
That said, a short-time frame death cross doesn’t mean much if you hold Ethereum or other altcoins for the long term – especially at the beginning of an emerging bull run.
These indicators affect traders more than investors, where leverage investors get rekt on both sides amid big volatility.
EXPLORE: 3 No-Brainer DePIN Crypto Projects to Watch Out For
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
