ETH/BTC Falls Below 0.04: Is This Ethereum’s Bottom?

• The decline in the ETH/BTC pair underscores Ethereum’s prolonged struggle compared to Bitcoin.
• Minimal address activity points to cautiousness and falling organic demand. Will this trend shift soon?

The ETH/BTC pair recently plummeted below 0.04, marking Ethereum’s lowest position against Bitcoin since April 2021. The question on every investor’s mind is: Is this Ethereum’s bottom, or could we be on the edge of an altcoin season surge?

The ETH/BTC pair hit a low of $0.0387 in the past 24 hours, a level not seen since April 2021, emphasizing Ethereum’s continuous weakness relative to Bitcoin and delaying the anticipated altcoin season.

Interestingly, this recent drop signifies an extended divergence, as some analysts suggest it might signal a significant upcoming pivot.

Source: TradingView

While Bitcoin’s dominance peaked at a new YTD high of 58.07% in the last 24 hours, it’s now showing signs of a possible reversal, according to a divergence pattern. This could lead to a pivotal shift, diverting liquidity towards altcoins, which could favor Ethereum.

Current Sell Pressure and Demand Trends for ETH

Despite the ETH/BTC drop, Ethereum hasn’t exhibited significant outflows. Exchange reserves pivoted on September 11 after reaching a 2024 low at 18.52 million coins.

Source: CryptoQuant

Currently, there are 18.79 million ETH in exchange reserves, reflecting renewed sell pressure over the weekend. As of now, Ethereum trades at $2,298, mirroring its opening price from the previous Monday, indicating it has forfeited its weekly gains.

An in-depth analysis of Ethereum’s on-chain activities reveals decreased address activity, falling to 262,786 addresses—the lowest count since mid-January 2024.

Source: CryptoQuant

This slump reflects the market’s uncertainty amid key upcoming decisions. Nonetheless, there’s evidence of ETH accumulation as prices dip, possibly indicating renewed investor interest.

Read Ethereum’s [ETH] Price Prediction 2024–2025

For instance, historical concentration data shows whale addresses increased from 58.44 million coins on August 13 to 58.47 million coins on September 15. Retail addresses also grew from 64.94 million coins to 64.97 million coins during the same period, suggesting both large-scale and retail investors are capitalizing on the reduced prices.

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