Key Points
- Ethereum’s weakness against Bitcoin is highlighted as ETH/BTC hits its lowest since April 2021.
- Low address activity shows caution and declining demand, but signs of accumulation are evident.
Ethereum has dipped to its lowest level against Bitcoin since April 2021. This has brought attention to Ethereum’s prolonged weakness against Bitcoin, and the delay of the anticipated altcoin season.
ETH/BTC Pair at a Low
The ETH/BTC pair recently hit a low of $0.0387. This underlines Ethereum’s continued weakness against Bitcoin and further delays the start of the altcoin season. Some analysts interpret the recent dip as a potential sign of an imminent strong pivot.
Meanwhile, Bitcoin’s dominance has reached a new year-to-date high of 58.07%. This dominance has shown signs of a potential reversal, suggesting a possible major pivot that could lead to liquidity flowing into altcoins, with Ethereum likely to benefit.
Ethereum’s Demand and Selling Pressure
Ethereum has not experienced significant outflows thus far. For instance, exchange reserves pivoted on September 11th after hitting a new year-to-date low of 18.52 million coins. At the time of writing, there were 18.79 million Ethereum in exchange reserves, indicating a resurgence of selling pressure over the weekend.
The cryptocurrency was trading at $2,298, which is close to its opening price the previous Monday, implying it has relinquished its weekly gains. A more in-depth analysis of Ethereum’s on-chain activity shows that the number of active addresses has dropped to 262,786, the lowest since mid-January 2024. This reduction suggests a high level of market uncertainty as key decisions loom.
However, there are indications of Ethereum accumulation as the price dips. Historical data shows that whale addresses increased from 58.44 million coins on August 13th to 8.47 million coins on September 15th. Retail addresses also grew slightly during the same period, suggesting that both whales and retail traders are capitalizing on the lower prices.
