Despite Ethereum’s recent price downturn, which was marked by four straight months of losses, historical data and the ETH/BTC ratio suggest a possible bottom-forming.
Historical price patterns spanning a decade indicate that Ethereum typically finds a price floor whenever it experiences three consecutive months of low closing prices.
Currently, Ethereum’s native cryptocurrency, Ether (ETH), is undergoing a period of sustained downward pressure.
Having registered four successive months of price declines, symbolized by “red candles” on monthly charts, culminating in an 18.47% decrease in value
During March, Ether’s market behavior mirrors a persistent bearish trend unseen with such force since the broader crypto market downturn of 2022.
The consistent month-over-month price declines, with each monthly close failing to exceed the prior month’s low, have ignited debate among market analysts.
The central question revolves around whether Ethereum is now approaching a definitive bottom or if further price erosion is anticipated for the altcoin.
ETH/BTC Ratio Plumbs 5-Year Depths
Adding to the concerning picture for Ethereum, the ratio of its value relative to Bitcoin (ETH/BTC) recently plummeted to its lowest point in five years on March 30th, reaching 0.021.
This ETH/BTC ratio, a key indicator reflecting Ethereum’s valuation in Bitcoin terms (currently BTC$84,944), underscores Ethereum’s comparatively weak performance against Bitcoin throughout the past five years.
Interestingly, when the ETH/BTC ratio last reached this level of 0.021, back in May 2020, Ethereum‘s price was considerably lower, trading between $150 and $300.
Furthermore, data from Token Terminal indicates a significant drop in Ethereum network fees during March, falling to $22 million.
This represents the lowest monthly fee revenue for Ethereum since June 2020 and suggests a decrease in both network activity and broader market engagement with the platform.
Ethereum’s network fees are essentially the costs users incur for processing transactions, and they directly reflect the demand for network usage.
A decline in these fees is typically interpreted as a sign of diminished network utility or reduced user activity.
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