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- The ETH/BTC dip highlighted ETH’s long-term weakness against Bitcoin, while further increasing the latter’s dominance.
- The low address activity underlines caution and declining organic demand, but can things change quickly?
Ethereum [ETH] has just fallen to its lowest level against Bitcoin [BTC] since April 2021. But could this be one of the signs that ETH and the altcoin market are about to start a big rally in what could be the start of the altcoin season?
The ETH/BTC pair reached a low of $0.0387 in the last 24 hours. This was the lowest level the currency pair has reached since April 2021.
It highlights how ETH has widened its weakness against Bitcoin, as well as further delaying the altcoin season.
Source: TradingView
At the same time, the recent downside of the ETH/BTC pair has shown that there is one extensive divergence. Some analysts see this as a sign that a sharp turnaround may occur.
Meanwhile, Bitcoin dominance just hit a new YTD high of 58.07% in the past 24 hours.
Moreover, Bitcoin’s dominance has also shown a potential reversal sign with a divergence pattern.
This suggests that it could face a major reversal that would pave the way for liquidity to flow into altcoins, in which case ETH would benefit.
ETH’s Selling Pressure and Demand
ETH has not shown any significant outflows so far. For example, foreign exchange reserves spiraled on September 11 after hitting a new YTD low at 18.52 million coins.
Source: CryptoQuant
At the time of writing, there were 18.79 million ETH in foreign exchange reserves. This reflected the revival of selling pressure, which made a comeback over the weekend.
The cryptocurrency was trading at $2,298 at the time of writing. This was close to Monday’s opening price of the previous week, meaning it had given up its weekly gains.
A deeper review of ETH’s on-chain activity revealed that address activity had dropped to 262,786 addresses. This was the lowest number of active addresses recorded by the network since mid-January 2024.
Source: CryptoQuant
This slowdown reflected the higher level of uncertainty in the market as major market decisions are about to take place. Nevertheless, there were signs of ETH accumulation as its price fell.
Read Ethereum’s [ETH] Price forecast 2024–2025
For example, historical concentration shows that whale addresses grew from 58.44 million coins on August 13 to 8.47 million coins on September 15.
Retail addresses grew from 64.94 million coins to 64.97 million coins in the same period. These findings indicate that investors, both whales and retailers, are benefiting from the reduced prices.