Ethereum Struggles Against Bitcoin as Analysts Warn of Further Declines

Ethereum (ETH) has been experiencing a notable decline relative to Bitcoin (BTC), prompting analysts to forecast further price drops in the near future.

As of March 13, the ETH/BTC ratio reached a new low of $0.022, the lowest point observed since May 2020. This drop was accompanied by the Relative Strength Index (RSI) hitting an all-time low of 23.32, signaling significant market weakness.

While an RSI below 30 typically suggests that an asset is oversold and could be due for a rebound, Ethereum’s prolonged downtrend raises questions about the potential for a swift recovery. Despite the RSI signaling oversold conditions, the price of ETH has continued to fall for the past two months, indicating that a reversal may not be imminent.

Experts are increasingly cautious as Ethereum reaches multi-year lows, with growing concerns about the competitive pressures the asset faces. Crypto analyst Alessandro Ottaviani emphasized that attempting to purchase ETH now could be like trying to catch a “falling knife,” warning that further declines are likely.

Ottaviani also pointed out that the ETH/BTC pair has broken through the critical support level of 0.023, further solidifying the bearish sentiment surrounding Ethereum. This pattern of rapid declines serves as a stark reminder of the risks involved in buying into a downtrend, with the potential for additional losses if the downward movement persists.