The cryptocurrency market is currently experiencing a downturn, with growing concerns arising from trade tensions and the impact of President Trump’s recent order to increase Bitcoin reserves. Ethereum, a prominent player in the altcoin sector, has seen a substantial decline, dropping by almost 14% in the past week. This downward trend has pushed its value below the critical $2,000 mark, hitting a multi-year low against Bitcoin. Investors are now uncertain whether Ethereum’s price will rebound above $2,000 or continue on a bearish path.
Ethereum’s dominance in the market has dropped to levels not seen since 2020, with a decrease in open interest and significant market liquidations. Recent data from Coinglass shows that Ethereum has witnessed a total of $71 million in liquidations, with $44 million from buyers and $27 million from sellers. Additionally, Ethereum’s open interest has fallen by 2% to approximately $17.65 billion.
The performance of Ethereum against Bitcoin has also weakened, reaching its lowest point in over five years. The ETH/BTC trading pair has dropped to 0.02267, marking its lowest level since May 2020. This decline highlights Ethereum’s diminishing strength compared to Bitcoin and indicates a shift towards bearish sentiment.
Furthermore, Ethereum’s market dominance has declined to 8.6%, the lowest since February 2020. In contrast, Bitcoin has been strengthening its market share, which has risen to 61.1% since 2022, signaling significant growth.
A comparison of historical value shows that in 2017, one Bitcoin could be exchanged for about six ETH. Today, that same Bitcoin could fetch around 42 ETH, demonstrating Ethereum’s substantial decline in value relative to Bitcoin over the years.
Investors have been favoring Bitcoin over Ethereum in the past year, largely due to Bitcoin’s stability. Additionally, Solana has emerged as a new contender in the market, drawing attention away from Ethereum. This trend reflects a preference for Bitcoin’s reliability and Solana’s promising future, making it challenging for Ethereum to stand out.
As Ethereum’s price continues to plummet after breaking below the crucial $2,000 threshold, it faces significant downward pressure and struggles to surpass a key resistance line. Currently priced at $1,874, Ethereum has experienced a 3.5% decline in the past 24 hours.
On the 1-hour price chart, the ETH/USDT pair is slightly below the EMA20 trend line, posing a potential obstacle. Staying above this level could help propel the price back towards $2,000, with a possible high of $2,530. However, if Ethereum remains below the EMA20 line, sellers may drive the price further down to around $1,772. Despite this, the Relative Strength Index (RSI) at 45 suggests a potential recovery, indicating ongoing buying interest at these lower levels.
In conclusion, Ethereum’s recent decline and struggles against Bitcoin point to a challenging period for the cryptocurrency. Investors are closely monitoring its price movements to determine whether Ethereum can regain its footing or if further losses are on the horizon.