Ethereum’s valuation has recently plummeted against Bitcoin, reaching a 3-year low. This decline, driven by significant whale sell-offs, has caught the attention of many in the crypto community.
The ETH/BTC trading pair fell to 0.039, a trough not seen since mid-2021. This drop underscores the recent trends where Ethereum has underperformed in comparison to Bitcoin while whale sell-offs exacerbated the decline.
Technical indicators, however, suggest that Ethereum may have bottomed out against Bitcoin, potentially setting the stage for a turnaround. The Relative Strength Index (RSI) is at 30, indicating that Ethereum is oversold. This can be a signal for traders to accumulate more ETH at these lower levels.
Moreover, analysts have identified a falling wedge pattern, which could signal the end of the downtrend, suggesting that Ethereum’s decline might be nearing its end.
On the other hand, caution is advised as the Moving Average Convergence Divergence (MACD) still displays bearish momentum. The MACD line lies beneath the signal line, accompanied by red histogram bars, indicating bearish control over Ethereum’s price.
Whale Selling Continues
Whales, significant holders of Ethereum, continue to sell at an alarming rate, increasing downward pressure on Ethereum prices.
SpotOnChain reported that one of the largest Ethereum whales, known for a record-making profit streak, has sold large quantities of ETH after holding them for eight years.
This whale initially bought ETH in 2016 when it was priced around $5. On September 16th, this whale sold $1M worth of ETH but still retains 16,199 Wrapped ETH (WETH), worth approximately $37M.
Additionally, the Ethereum Foundation has also been actively selling. It sold another 100 ETH on September 16th, bringing its total sales to 650 ETH in the past three weeks.
Market Sentiment Remains Low
This increased supply in the market, coupled with low demand, is further dampening the sentiment around Ethereum. Coinshares’ recent report indicates that Ethereum investment products have seen outflows worth $117M over the past month.
In contrast, Solana, an Ethereum competitor, saw inflows of $6.9M during the same period. These contrasting trends highlight a shifting interest away from Ethereum.
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