{"id":425421,"date":"2020-05-28T18:30:04","date_gmt":"2020-05-28T18:30:04","guid":{"rendered":"https:\/\/wncen.com\/?p=425421"},"modified":"2024-06-11T13:04:19","modified_gmt":"2024-06-11T13:04:19","slug":"ethereum-eth-dominant-btc-crypto-drop","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/ethereum-eth-dominant-btc-crypto-drop\/","title":{"rendered":"Ethereum (ETH) May Be Forecasting 50% Drop Against Dominant BTC"},"content":{"rendered":"
For over two years now, Bitcoin has been outperforming altcoins like Ethereum<\/a> and others. BTC dominance has continued to climb as a result.<\/p>\n However, Ethereum may be forecasting another 50% drop on the ETHBTC trading pair that could bring dominance back to pre-bubble levels.<\/p>\n In early 2020, Ethereum<\/a> vastly outperformed Bitcoin due to surging interest and buzz surrounding decentralized finance<\/a>.<\/p>\n Talk of the 2020 launch of ETH 2.0 kept bullish momentum high enough for a record-setting nine full weeks of consecutive green candles<\/a>.<\/p>\n Related Reading | Nearly 2% of the Ethereum Supply is Margin Long on Bitfinex, But Why?\u00a0<\/a><\/strong><\/em><\/p>\n But a doji on monthly price charts for ETHUSD suggest investors are feeling indecisive<\/a>.<\/p>\n On the ETHBTC trading pair, things look even worse. A long-term channel has formed, as can be seen below in the pitchfork tool.<\/p>\n Pitchforks are broken into four distinct quadrants<\/a>. The way traders utilize this tool, is by watching for a break or rejection of one of the four quadrants.<\/p>\n For example, if price is rejected from the lowest quadrant, it suggests that a test of one of the upper three quadrants is next.<\/p>\n Ethereum’s top at over 0.15 BTC on the ratio kicked off the pitchfork channel, which then fell through each quadrant, bouncing off the bottom.<\/p>\n <\/p>\n Remaining bullish sentiment surrounding altcoins caused a second surge to the top of the tool, which was rejected back into the second-highest zone.<\/p>\n Related Reading | Doji Forming On Ethereum Monthly Hints At Investor Indecision\u00a0<\/a><\/strong><\/em><\/p>\n Since then, Ethereum<\/a> has been trapped within the two middle quadrants. The altcoin made two more attempts recently to break up into the top quadrant but has been rejected twice now.<\/p>\n As explained earlier, rejection from the middle-top quadrant could lead to retests of the lower two quadrants.<\/p>\n The bottom of the lowest quadrant happens to line up well with untested support from late 2016 and early 2017 before the crypto hype bubble kicked off.<\/p>\n This area could act as the final bottom<\/a> for ETHBTC before the smart contract-focused altcoin finally plays catch up against the first-ever cryptocurrency.<\/p>\n This represents another over 50% drop from current levels at 0.0225 on the ratio, to as low as 0.0075.<\/p>\n By comparison, Bitcoin<\/a> remains down slightly over 50% from its all-time high, while Ethereum is down by 85%.<\/p>\n At the height of the crypto bubble, the ICO boom drove Ethereum prices to as high as $1,400 per ETH token. To revisit such highs, the top altcoin would require an over 550% return on investment to make a full recovery.<\/p>\n Some crypto analysts claim that Ethereum and other altcoins may never revisit all-time highs, even if Bitcoin reaches prices of $100,000 per BTC in the future<\/a>.<\/p>\nETHBTC Points To Dangerous Ethereum Drop Against Bitcoin<\/h2>\n