Key Points
- ETH has reached its lowest level against BTC in over 40 months.
- Traders have shown preference for Bitcoin over Ethereum, evident in ETF investments.
Ethereum’s Decline Against Bitcoin
Ethereum (ETH) has been experiencing a significant decline against Bitcoin (BTC) over the past few months. Despite occasional spikes, the overall trend for ETH has been bearish.
Data from IntoTheBlock reveals that ETH is trading at its weakest against BTC in nearly four years. The ETH/BTC pair analysis on Coinbase shows ETH trading at 0.04044 BTC, a decrease of 0.25%.
Additionally, the 50-day moving average is below the 200-day moving average, forming a Death Cross. This is a bearish signal indicating a potential long-term downtrend.
Bitcoin’s Strength Over Ethereum
On the other hand, BTC has been showing strength over ETH. Analysis of the BTC/ETH pair on Vantage reveals a strong bullish trend, with the price at 24.7097 ETH.
The chart shows a Golden Cross, where the 50-day moving average has crossed above the 200-day moving average. This signals a possible long-term upward trend for BTC against ETH.
ETF Flows Highlight Preference for Bitcoin
Data on ETF flows further demonstrate the market’s preference for BTC over ETH. Bitcoin ETFs have seen an inflow of around $92 million this week, compared to a mere $2.9 million for Ethereum.
Furthermore, cumulative total net flow for US spot Bitcoin ETFs is positive at approximately $17.7 billion. In contrast, US spot Ethereum ETFs have a negative net flow of about $607 million. This data shows a clear preference among traders for BTC over ETH.
Despite Ethereum’s recent struggles, traders continue to favor Bitcoin ETFs. As the BTC/ETH ratio remains in Bitcoin’s favor, Bitcoin’s bullish momentum could continue, while Ethereum faces ongoing challenges.
