- ETH has regained $2500 after last week’s Fed pivot, boosting the ETH/BTC pair.
- According to Cowen, ETH/BTC could bottom if the pair were to regain the 50-day MA short-term trend.
The market has shown less interest in it Ethereum [ETH] despite the debut of the US spot ETH ETF in the third quarter. ETH fell 25% in the third quarter, hitting a record low on the ETH/BTC pair, which tracks the altcoin’s relative performance Bitcoin [BTC].
But last week’s Fed pivot tipped the altcoin to regain $2,500 after rallying for three consecutive days.
The rebound was also marked by net inflows of $8.2 million over the past two trading days for US spot ETH ETFs.
When will ETH/BTC bottom?
However, crypto analyst Benjamin Cowen was still cautious about ETH strengthening and an ETH/BTC bottom.
Cows declared that the ETH/BTC bottom could remain elusive if the pair fails to reclaim the 50-day moving average (MA), citing the 2016 and 2019 trends.
“After #ETH/#BTC broke in 2016 and 2019, the bottom was reached after ETH/BTC got back above its 50D SMA…So as long as ETH/BTC is < 50D SMA, it is still possible for ETH/BTC to go lower.”
But he added that the pair could recover if it bounces above the 50-day MA, which was at 0.04255.
“But once the 50D SMA is surpassed, I think it’s more likely than not that the bottom has been reached.”
Source: Cowen/X
Price action above the 50-day MA generally indicates bullish short-term momentum.
Meanwhile, some whales benefited from ETH’s recent price increase. A well-known one per Spot On Chain whale sold 15K ETH worth $38.4 million on Kraken. The address has seen two other sell-offs in the third quarter, each leading to a slight decline in ETH.
Source: CryptoQuant
That said, overall exchange grid power declined despite the recent spike. This suggested that selling pressure on centralized exchanges has moderated. Ergo, this could cause the ETH price to continue with the recovery.
The reduced selling pressure has coincided with increased demand for Ethereum among US investors, as evidenced by the Coinbase Premium Index and recent positive US ETH ETF flows.
However, it remains to be seen whether ETH’s recovery will continue after the euphoria associated with the Fed rate cut subsides.
Source: Coinbase