Ethereum’s Price Plunge: Key Factors and Market Sentiment
Ethereum’s value has been on a steep decline against the US dollar and Bitcoin. The coin’s price against BTC hit 0.023, its lowest as May 2020, marking a 74% drop from its pandemic peak.
similarly, ETH fell to $1,770, its lowest since October 2023, down 57% from its december 2023 high. This price crash is due to ETF outflows, competition from other networks, and reduced profitability.
Kraken analysts noted that ETH’s weekly linear futures entered backwardation, indicating bearish sentiment.Backwardation occurs when futures prices are lower than spot prices, suggesting further price drops. Bitcoin’s futures, though, remain in contango, showing relative strength.
On the weekly chart, ETH/BTC has been falling, staying below moving averages. The Average Directional Index is at 38, showing a strong downward trend.The Relative Strength Index and Stochastic Oscillator are oversold, hinting at continued declines.
Key points:
- Ethereum’s price against BTC is at its lowest as May 2020.
- ETH’s weekly linear futures entered backwardation.
- Bitcoin’s futures remain in contango.
- Technical indicators suggest a strong downward trend.
For more insights, visit crypto.news.
