Ethereum Plunges 30% in 30 Days, ETH/BTC Ratio Hits 2021 Low

Ethereum's price has plummeted by over 30% in the past 30 days, dragging its performance against Bitcoin (BTC) to its lowest level since January 2021. As selling pressure intensifies, ETH risks further downside, with key technical indicators pointing to a prolonged bearish trend.

ETH oscillated within a narrow price range for most of February. However, as selloffs strengthened, the coin broke below the lower trend line of this horizontal channel on February 25 and has since been in a downtrend. Currently trading at $2,089, ETH’s value has dropped to levels last seen in December 2023.

The ETH/BTC ratio, which represents the ratio between ETH’s and BTC’s price, has weakened significantly. At press time, it is 0.02, its lowest since January 2021. This indicates that ETH is underperforming in the market.

The surge in ETH’s circulating supply due to its reduced burn rate has contributed to the downward pressure on its price. According to Ultra Sound Money, 66,748.91 ETH coins valued above $140 million at current market prices have been added to the ETH’s circulating supply in the past month.

On the daily chart, ETH trades below the lower trend line of its long-term descending parallel channel. When an asset’s price breaks below the lower line of this bearish pattern, it suggests an acceleration in selling momentum. This raises the risk of further ETH price declines in the short term, with its price potentially breaking below $2000 and trading at $1,922.

However, if demand for the altcoin resumes, it could cause its price to rally toward $2,223.