{"id":124972,"date":"2025-03-13T07:16:04","date_gmt":"2025-03-13T07:16:04","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=124972"},"modified":"2025-03-13T07:16:04","modified_gmt":"2025-03-13T07:16:04","slug":"ethereum-falling-knife-warning-is-another-30-crash-versus-bitcoin-coming","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=124972","title":{"rendered":"Ethereum 'falling knife' warning: Is another 30% crash versus Bitcoin coming?"},"content":{"rendered":"

Source: Cointelegraph.com NewsEthereum\u2019s native token, Ether (ETH), has dropped to its multi-year lows against Bitcoin (BTC), prompting analysts to predict further declines in the coming weeks.
\nFalling knife warning furthers sell-off risks
\nOn March 13, ETH\/BTC\u2014a pair that tracks Ether\u2019s strength against Bitcoin\u2014dropped by over 1.50% to reach $0.022, its lowest level since May 2020.
\nETH\u2019s descent is part of its multi-year downtrend that started when it established a record high of $0.156 in June 2017. Since then, it has plunged by more than 85%, underscoring Ether\u2019s growing weakness against Bitcoin.
\nMeanwhile, on the two-week ETH\/BTC chart, the relative strength index (RSI), a momentum indicator used to measure whether an asset is overbought or oversold, has fallen to a record low of 23.32.
\nETH\/BTC two-week price chart. Source: TradingViewTypically, when RSI drops below 30, it signals oversold conditions, potentially leading to a price rebound.
\nHowever, in Ethereum\u2019s case, RSI has continued to plunge even lower even two months after becoming oversold, suggesting that ETH\u2019s downtrend is still accelerating rather than stabilizing.
\nCrypto analyst Alessandro Ottaviani has described the situation as a \u201cfalling knife\u201d scenario\u2014a term used to describe an asset that is experiencing a rapid and steep decline, often discouraging buyers from stepping in too soon.
\nA falling knife implies that attempting to catch the asset at a perceived low could lead to further losses if the downtrend persists.
\nFor Ethereum to signal a potential reversal, traders will be watching for RSI stabilization and reclaim of key resistance levels. That ideally begins with a rebound from the 0.022 BTC level, which had limited ETH\/BTC\u2019s downside attempts in December 2020, leading to a 300% rally.
\nETH\/BTC weekly price chart. Source: TradingViewShould a rebound happen, the ETH\/BTC pair can rally toward its 0.382 Fibonacci retracement line at around 0.038 BTC, aligning with the 50-week exponential moving average (50-week EMA; the red wave).
\nUntil then, the technical outlook suggests that ETH\/BTC could remain trapped in its falling knife trajectory, with the next potential downside targets at historical support levels inside the 0.020-0.016 BTC range.
\nETH\/BTC two-week price chart. Source: TradingViewThe lowest point of this range is approximately 30% below the current price levels.
\nETH\/BTC fundamentals support a bearish outlook
\nEther\u2019s prospects of declining further against Bitcoin are rooted in factors beyond technical analysis.
\nFor instance, Ethereum currently faces strong competition from rival layer-1 blockchains, namely Solana (SOL).
\nRelated: ‘The worst thing that happened to Ethereum’ \u2014 Bitcoin up 160% since the Merge
\nVanEck noted that Solana\u2019s decentralized exchange volume has surpassed Ethereum\u2019s even during a steep dropoff in memecoin trading activity. Meanwhile, Solana\u2019s volume has risen consistently in recent months, which coincides with a decline in Ethereum\u2019s volumes.
\nSolana vs. Ethereum DEX volumes. Source: VanEckFurthermore, the launch of spot Bitcoin ETFs has fundamentally altered the traditional crypto market cycle that used to benefit Ethereum and other altcoins.
\nHistorically, after Bitcoin surged post-halving, capital rotated into altcoins, triggering an \u201caltseason\u201d where ETH and other assets outperformed BTC. However, the $129 billion inflows into Bitcoin ETFs in 2024 have disrupted this cycle, draining liquidity from the broader altcoin market\u2014including Ethereum.
\nBitcoin Dominance Index weekly price chart. Source: TradingViewAnother factor is Ethereum-specific selling pressure.
\nThe recent Bybit hack reportedly led to substantial ETH liquidations, with some of that value laundered via decentralized platforms like Thorchain. This absorbed sell-off may still be rippling through the market, depressing ETH\u2019s relative value.
\nThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.Read More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsEthereum\u2019s native token, Ether (ETH), has dropped to its multi-year lows against Bitcoin (BTC), prompting analysts to predict further declines in the coming weeks. Falling knife warning furthers… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/124972"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=124972"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/124972\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=124972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=124972"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=124972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}