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Ethereum Faces 450% Surge Potential as ETH/BTC Ratio Tests Key Level

Coin WorldSaturday, May 3, 2025 11:16 pm ET

1min read

The ETH to BTC exchange rate is currently approaching a critical level, with the ratio hovering around 0.019 BTC. This threshold is significant as it mirrors the technical configuration seen in September 2019, when the ETH/BTC pair experienced a remarkable 450% surge. The Relative Strength Index (RSI) is positioned in the oversold zone and has consistently fallen below vital moving averages, indicating a potential for a breakout or a further decline.

Historically, Ethereum has faced significant declines, including a 90% drop post the ICO bubble and an 80% retraction from its 2021 peak. Chart analyst Jimie noted that the ETH/BTC pair is testing the limits of the long-standing “bearish parabolic” resistance established since December 2021. A failed breakout could see the exchange rate drop to 0.016 BTC, while a successful breach may signal a potential uptrend.

Early Bitcoin developer Adam Back raised concerns about fundamental design vulnerabilities within Ethereum’s account infrastructure. He suggested that the shift to Proof of Stake (PoS) could exacerbate power concentration among significant holders, recommending selling ETH for BTC to avoid potential losses. The recent decline in Ethereum’s price is largely influenced by market skepticism toward its transition to PoS, the emergence of competing blockchains, and Bitcoin’s rise as a leading institutional asset.

In response to these challenges, Ethereum co-founder Vitalik Buterin introduced a transformative protocol architecture plan. This plan aims to achieve Bitcoin-level simplicity and maintainability over the next five years, a proposal viewed by analysts as a promising advancement for the Ethereum ecosystem. The plan could potentially address some of the concerns raised by Back and stabilize Ethereum’s position in the market.

The current technical configuration of the ETH/BTC pair, with the RSI in the oversold zone and below moving averages, suggests that Ethereum is at a critical juncture. The outcome of this test will likely determine the short-term direction of the ETH/BTC exchange rate. If Ethereum can successfully break through the bearish resistance, it may signal a potential uptrend. However, a failed breakout could see the exchange rate drop to 0.016 BTC, reinforcing the bearish trend.

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