Can Ethereum Reverse its 15-Month Losing Streak Against Bitcoin?

The value of Ethereum’s native token, Ether (ETH), has been trading near a 15-month low when compared to Bitcoin (BTC), and the lowest since Ethereum switched to proof-of-stake (PoS).

Will this downward trend continue throughout 2023? Let’s take a closer look at the charts to answer this question and explore the web 2.0 vs web 3.0, web3 vs web 3.0, the block crypto, what three features are integrated into web 3.0, web 1.0 vs 2.0 vs 3.0, web 3.0 vs metaverse, crypto ethereum, web 1.0 vs web 2.0 vs web 3.0, metaverse vs web 3.0, and web 2.0 vs 3.0 comparisons.

Ethereum price slips below key support relative to Bitcoin

The ETH/BTC pair dropped to as low as 0.056 BTC this week, breaching its 200-week exponential moving average (200-week EMA; the blue wave) near 0.058 BTC and thus raising the likelihood of further downside in 2023.

The 200-week EMA has previously been a dependable support level for ETH/BTC bulls. For instance, after testing the wave support in July 2022, the pair rebounded by 75%. Conversely, after losing the same support in October 2020, it dropped by more than 25%.

ETH/BTC now faces similar selloff risks in 2023 after losing its 200-week EMA as support. In this case, the next target for the downside looks to be the 0.5 Fib line near 0.051 BTC in 2023, a decrease of about 9.5% from current crypto ethereum prices.

Conversely, ETH may bounce back towards its 50-week EMA (the red wave) near 0.065 BTC if it regains the 200-week EMA as support.

Bitcoin’s Bullish Outlook Outshines Ethereum’s

Data on institutional capital flows reveal Ethereum’s lagging performance compared to Bitcoin. For example, as of October 6, CoinShares reported that Bitcoin-specific investment funds had attracted $246 million YTD, while Ethereum funds experienced outflows of $104 million in the same period.

Speculation about the potential approval of a spot Bitcoin exchange-traded product (ETF) in the U.S. is likely playing a role in the discrepancy. Analysts believe that if a spot Bitcoin ETF is launched, it could draw in up to $600 billion.

The crypto community is also anticipating Bitcoin’s fourth halving in 2024, when miners’ block reward will be cut from 6.25 BTC to 3.125 BTC, which could be a bullish sign based on historical precedent, as it reduces the amount of new Bitcoin entering the market.