Ether Traders Brace for Volatility as ETH/BTC Hits 3-Year Low

by | Nov 6, 2024 | Ethereum News, Latest News | 0 comments

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The ETH/BTC ratio, a major metric for traders in the crypto space, has dropped to its lowest point in three years, sparking concerns about further price volatility. At approximately 0.035, this ratio hasn’t been this low since March 2021, when it later surged. However, not all analysts are optimistic about a repeat performance.

No Reversal in Sight, Say Analysts

Galaxy’s Head of Research, Alex Thorn, highlighted the recent plunge, noting on Nov. 5 that the ratio had reached a multi-year low of 0.03496. Market analyst Zach Voell echoed this sentiment, stating, “no reversal in sight” for ETH/BTC and cautioning traders not to overlook this trend amid other news.

Voell shared in a social media post, “Don’t let the election distract you from the fact that ETH/BTC keeps plummeting.”

Crypto commentator Colin Talks Crypto reinforced this outlook, predicting further declines for the pair.

Historical Patterns Provide Mixed Outlooks

While some traders are bracing for more losses, others point to historical data suggesting a possible rebound. When ETH/BTC last hit these levels in 2021, the ratio doubled in two months, accompanying a 120% surge in Ether’s price. Benaiah, a well-known crypto commentator, expressed optimism on social media, predicting that “the coming pump will be epic.”

Still, uncertainty remains. Bitfinex analysts warned of a potential “much deeper correction” for Bitcoin on shorter timeframes, which could affect Ether’s performance if BTC sees gains without similar movement from ETH.

Increased Volatility on the Horizon

Adding to these signals, CryptoQuant contributor Amr Taha observed that 82,000 ETH, worth over $200 million, entered derivative exchanges on Nov. 5, a move he suggests may lead to “heightened market activity” or a “potential price correction.” Taha noted that this surge in NetFlow could mean further volatility for Ether.

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With the U.S. presidential election results approaching, the broader crypto market is also bracing for possible impacts. Bitfinex analysts expect the conclusion of the election to spark “big moves” in both Bitcoin and Ether, though the direction remains uncertain.

As of publication, Ether is trading at around $2,445, and traders remain divided on whether to anticipate an epic rally or prepare for continued lows.

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